Brent Crude Oil fell more than 1% to around $103.5 per barrel on Thursday, as uncertainties around the Covid situation in top importer China weighed on the markets and dimmed the outlook for fuel demand.
State media reported Wednesday that the Chinese city of Hangzhou, an e-commerce hub and home to 12.2 million people, will conduct mass Covid testing from April 28.
Beijing also reported increasing virus cases as it recently began a mass testing program aimed at containing a new outbreak, while the outbreak in Shanghai appeared to be stabilizing.
Meanwhile, oil prices advanced in the past two sessions as concerns about tight global supply continued to grip the markets.
Russian energy giant Gazprom on Wednesday halted gas supplies to Bulgaria and Poland after the EU-member countries refused to pay gas imports in rubles, escalating an energy crisis in Europe at a time the EU is considering a ban on Russian crude.