On Monday, oil prices dropped sharply to a nearly 11-month low as escalating protests in several major Chinese cities ramped up concerns over growing economic troubles in China.

Brent oil futures fell 2.6 per cent to USD 74.31 a barrel in early Asian trade. On the other hand, West Texas Intermediate crude futures fell 2.4 per cent to USD 81.69 a barrel. Both contracts extended sharp drops from last week, trading at their weakest level since January.

It is to be noted that civil unrest broke out in many Chinese cities over the weekend as many civilians expressed their discontent with China’s strict zero-COVID policy. Reportedly, these protests come in the wake of new restrictions introduced over the past two months as China scuffles with record-high daily infections. This has also thrashed crude markets with the prospect of weakening demand in China.

The world’s largest oil importer’s crude imports have plunged steadily this year, indicating few signs of recovery. Advanced oil export quotas in China also suggest that local consumption remains weak.