Oil dropped below $98 a barrel in New York as investors assessed the impact of China’s rapidly spreading Covid-19 outbreak on the outlook for global demand. West Texas Intermediate futures lost 0.6%, having earlier risen as much as 1.3%. China’s central bank pledged to increase support for the economy as authorities in Beijing expanded virus testing to most of the city, raising fears the capital could be locked down. Covid’s comeback has hammered fuel consumption in the world’s biggest crude importer. With near-term prices under pressure, the structure of Brent’s futures curve has weakened significantly in recent days, indicating that concerns about scarce supply have eased. Brent’s prompt spread had its weakest close this year on Monday, a move compounded by softer Chinese demand. “The key for the market is how the situation in Beijing develops in the coming days and weeks,” ING Bank analysts Warren Patterson and Wenyu […]