West Texas Intermediate (WITI) futures dipped below US$94 a barrel, touching the lowest level since late february, before recovering some losses.

Covid-19 cases continue to rise in Shanghai, and it is unclear when restrictions will be lifted. The outbreak has led to disruptions at ports and some refineries have reduced operations.

Oil has given up most of the gains posted since the russian invasion of Ukraine in late february after a tumultuous trading period. The weakening of the futures curve in recent days has pointed to easing supply shortage concerns and, so far, there are no signs that Russia's crude exports are starting to crumble.

The war has stoked inflation and prompted the U.S. and its allies to release strategic reserves to cool prices. Shanghai reported a record of more than 26,000 new cases of coronavirus on sunday.

Oil analysts continue to cut their demand forecasts as the outbreak slows travel. Russian crude shipments in the seven days to april 8 continued a rebound that began the previous week, after falling steadily since the invasion of Ukraine on feb. 24. Weekly shipments reached nearly 4 million barrels per day in the first full week of april, the highest level seen so far this year.