[A man gets tested for Covid-19 at a makeshift testing site behind barriers of an area under lockdown in Shanghai. (Photo by= Reuters)]

Global oil prices have fallen as China starts to implement a city-wide lockdown in Shanghai, an important financial and manufacturing hub. Brent crude lost more than $4.50 a barrel on concerns that the move would mean that demand for oil will fall, BBC reported.
 
The Shanghai Composite stock index fell in early trade before regaining most of the losses later in the day. The lockdown, which began on Monday, is China's largest since the coronavirus outbreak began more than two years ago. The futures contract for Brent crude - an international benchmark for oil prices - was down by 4% at $115.80 a barrel. Despite the fall, oil remains almost 80% higher than it was a year ago after the war in Ukraine helped to drive up prices.
 
Traders were concerned about the effectiveness of China's zero-tolerance policy towards Covid, said Stephen Innes, managing partner at SPI Asset Management. Most factories continue to operate as usual, and workers are either being confined on-site or given priority for testing, the Shanghai-based economist told the BBC. The city will be locked down in two stages over nine days while authorities carry out Covid-19 testing. The key financial center has battled a new wave of infections for nearly a month, although case numbers are not high by some international standards.