On Monday evening, oil prices accelerated their decline amid a possible decrease in demand for raw materials in China due to the next socio-economic bans caused by a new outbreak of coronavirus in the country.

The price of Brent futures is $111.44 per barrel, futures for North American WTI oil are located near the level of $108 per barrel. 

Traders drew attention to China's decision to introduce the largest lockdown in Shanghai in two years due to the new Covid-19 outbreak. Severe restrictions on the movement of the population in Shanghai raises strong concerns about a reduction in oil demand.

As you know, Shanghai is the financial center of China, so its blocking will inevitably lead to further economic downturn and supply problems. 

In addition to the situation in China, the situation around Ukraine and anti-Russian sanctions continue to influence the dynamics of the oil market. Analysts suggest that the cost of oil may continue to rise, given Russia's decision to sell hydrocarbons to unfriendly countries for rubles.