Oil prices fall as Shanghai goes into lockdown

Global oil prices have fallen as China starts to implement a city-wide lockdown in Shanghai, an important financial and manufacturing hub.

Brent crude lost more than $4.50 a barrel on concerns that the move would mean that demand for oil will fall.

Despite the fall, oil remains almost 80% higher than it was a year ago after the war in Ukraine helped to drive up prices.

'From 5 am March 28 - 5 am April 01, temporary closed-off management will be enforced in regions lying to the east and south of the Huangpu River, including Pudong and its adjacent areas, to carry out nucleic acid testing, according to the city's COVID-19 prevention and control office', Xinhua News reports.

'Then from 3 a.m. on April 1 to 3 a.m. on April 5, similar temporary closed-off management and testing will be launched mainly in urban districts west of the Huangpu River,' it adds.

Xinhua further notes :

"The office said the measure is taken to curb the virus spread, protect people's life and health, and achieve the dynamic zero-COVID target as soon as possible."

"In areas affected, closed-off management will take place in residential communities and residents will be required to stay indoors, while non-contact delivery of necessities will be allowed."