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Brent crude futures fell $1.07, or 1.15%, to $92.07 a barrel by
1005 GMT after settling 3% lower on Monday.
U.S. West Texas Intermediate crude fell by $1.25, or 1.46%, to
$84.62, after tumbling 3.5% in the previous session.
Investors cheered China's announcements last week that it would
lessen the impact of a strict zero-COVID policy to spur economic
activity and energy demand, but analysts said lockdowns and
surging case numbers continue to be a key downside risk.
"Rising COVID cases in Beijing and in other cities served us
with a reminder that a change in the trajectory of economic and
oil demand growth in the world's biggest oil importer is
anything but imminent," said Tamas Varga of oil broker PVM.
The country's COVID cases rose further on Tuesday, including in
the capital Beijing, and the country's factory output growth
slowed.
Investment bank JPMorgan cut its quarterly and full-year
forecasts for economic growth in China on Tuesday due to the
country's ongoing COVID restrictions.
Meanwhile, the Organization of the Petroleum Exporting Countries
(OPEC) cut its 2022 global oil demand growth forecast for a
fifth time since April, citing mounting economic challenges
including high inflation and rising interest rates.
However, concerns about tight supplies this winter continued to
support oil prices. A European Union embargo on Russian oil is
set to start on Dec. 5. The ban will be followed by the halting
of oil product imports in February.
EU bans on seaborne Russian crude mean 1.1 mln bpd will need to
be replaced, the International Energy Agency said on Tuesday.
In further bullish news, U.S. crude oil stocks are expected to
have dropped by about 300,000 barrels in the week to Nov. 11, a
Reuters poll showed on Monday.
The poll was conducted ahead of reports from the American
Petroleum Institute due at 4:30 p.m. ET (2130 GMT) on Tuesday
and the Energy Information Administration (EIA) due on
Wednesday.
(Reporting by Rowena Edwards in London, additional reporting by
Florence Tan and Isabel Kua in Singapore; Editing by Kirsten
Donovan)
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