Crude oil futures ended deeply in red on Tuesday as reports showing a surge in Covid-19 cases in China raised concerns about the outlook for energy demand. China is seeing a surge in new coronavirus cases in Guangzhou and other Chinese cities, preventing the country from stamping out the virus and relaxing controls. The global manufacturing hub is fighting its worst flare-up ever, testing its ability to avoid a Shanghai-style lockdown.
Benchmark crude oil futures for December delivery fell $2.88 or about 3.1 percent at $88.91 a barrel on the New York Mercantile Exchange. Brent crude for January delivery dropped $2.56 or about 2 percent to settle at $95.36 a barrel on London's Intercontinental Exchange.