LONDON: Global oil prices plunged on Wednesday over China demand concerns and European gas prices sank to their lowest levels since November 2021 as mild winter weather reduced demand.

Crude prices extended losses from a day earlier, diving around five per cent, over concern about demand in the world’s biggest oil importer China, amid a steep rise in Covid infections in the country.

At around 1600 GMT, a barrel of WTI for delivery in February was down 4.9pc at $73.15 a barrel, and the main European contract, Brent for delivery in March, was 4.9pc lower at $78.11.

Meanwhile, wholesale natural gas prices in Europe sank to their lowest levels since November 2021 as mild winter weather reduced demand, erasing all the gains seen last year amid Russia’s invasion of Ukraine. The benchmark European contract — Dutch TTF gas future for the coming month — dropped 9.3pc to 65.59 euros at around 1620 GMT, extending losses since the beginning of the week.

Published in Dawn, January 5th, 2023