Oil prices fell more than 2% at the start of Asian trading on Monday after Chinese officials reiterated their pledge to strictly control the coronavirus outbreak over the weekend, dashing hopes of a rebound in oil demand in the world’s top crude importer.

Brent crude futures were down $1.58, or 1.6%, at $96.99 a barrel by 2336 GMT after hitting a low of $96.50 earlier. US West Texas Intermediate crude was at $90.84 a barrel, down $1.77, or 1.9%, after falling to an intraday low of $90.40 earlier in the session.

“Oil prices fell sharply as Chinese officials vowed to stick to a zero-covid policy while infections climbed in China, which could lead to more restrictions and dim the demand outlook,” said Tina Teng, an analyst at CMC Markets. The rising dollar also weighed on oil prices, she added.

On Friday, four Fed policymakers said they would consider raising interest rates slightly at their next policy meeting despite solid employment data.

Brent and WTI rose 2.9% and 5.4% last week as rumours of a possible end to strict COVID-19 lockdowns pushed Chinese stocks and commodities higher, although no changes were announced.

However, at a news conference on Saturday, health officials said they would stick to a “dynamic clearance” approach should a coronavirus case emerge.

Trade data from the world’s second-largest economy late Monday could suggest that exports will cool further as global demand continues to soften.

“The market is still dealing with signs of softening oil demand due to already high oil prices and a weakening economic backdrop in developed markets,” analysts at ANZ said in a note, adding that demand in Europe and the US has fallen back to 2019 levels.

“We now expect global demand to grow by just 0.6 mb/d (millions of barrels per day) in the fourth quarter of 2022 compared to the same period last year and to moderate over the next year.”