Oil hits 2-week low ahead of EIA weekly report

Oil prices continued to fall as the US market opened on Friday, and hit a 2-week low while on track for the second daily loss out of 3 days, weighed down by demand concerns in China after the Chinese authorities imposed new lockdown restrictions due to rising coronavirus infections, in addition to a build in the US crude inventories, according to the American Petroleum Institute's preliminary data, and ahead of the Energy Information Administration's official data. 

US crude fell 3.1% to the lowest level since January 8 at $51.46 a barrel, after opening at $53.09, and hit a high of $53.13, and Brent crude fell 2.7% to it 2-week low of $54.50 a barrel, after opening at $56.00, and hit a high of $56.20.

US crude yesterday rose 0.1% yesterday, and Brent crude futures rose 0.6%, as most dollar-denominated commodity prices rose.

The Chinese authorities imposed new lockdown restrictions in the country, aimed at preventing the spread of the second Covid-19 wave, especially after a spike of infections in many provinces.

Shanghai has reported the first coronavirus cases in more than 2 months, and the Chinese government urged citizens not to travel during the Lunar New Year holiday.

The American Petroleum Institute reported Wednesday that crude inventories rose 2.6 million barrels during the week ending January 15, missing forecasts of a drop by 1.2 million barrels.

While the US Energy Information Administration's official data will be released later today, amid forecasts for inventories to fall by 1.2 million barrels.