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Oil prices fell on Sunday as Shanghai authorities announced the city will enter a two-phase lockdown to allow residents to undergo COVID-19 tests.
The lockdown announcement comes amid a new daily record for asymptomatic COVID-19 infections.
Shanghai will be split in two for the lockdown and will use the Huangpu River as a guide, according to authorities.
The city of more than 26 million reported 47 new symptomatic COVID-19 cases and 2,631 new asymptomatic cases as of Saturday.
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Vehicles drive through an intersection in Shanghai, China, on Wednesday, March 23, 2022. China’s worst COVID outbreak in more than two years continues to fester, with daily infections nearing 5,000 today. (Qilai Shen/Bloomberg/Getty Images)
Authorities say the districts east of the Huangpu River and some in the west will be locked down and tested from March 28 to April 5, while the other areas will be locked down and tested from April 1 to April 5.
The restrictions have caused Brent Crude to fall $3.68 to $116.97 and US Crude to fall $3.30 to $110.60.
Ride services and public transportation will not operate during the shutdown of Shanghai, and unauthorized vehicles will not be allowed on the roads.
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Factories will also be forced to halt operations, but businesses involved in public services or the food supply can continue to operate during the lockdown.
“The public is asked to support, understand and cooperate with the city’s epidemic prevention and control work and duly participate in nucleic acid testing,” the government said in a WeChat post.
Reuters contributed to this report