Shares of severeal energy companies are trading lower as oil falls amid concerns over COVID-19 restrictions in China. Oil prices bounced off of session lows around noon after the Saudi Energy Minister denied discussions about OPEC going forward with an output hike.

What's Going On?

Per Bloomberg, the price of global benchmark Brent dropped as much as 6% to trade below $83 a barrel during Monday's session. This marks the lowest Brent price since January.

China continues to be a hotbed for COVID-19 and the intermittent outbreaks have affected manufacturing in the country. Consumers now have less money to spend as a result of the multiple COVID resurgences and its impact on the economy. The country's first COVID-related death in Beijing also spurred worries of more severe restrictions, according to Bloomberg.

Additionally, the Wall Street Journal earlier reported that OPEC+ is considering an output increase of 500,000 barrels but Saudi Arabia's Energy Minister has denied this, which led to a spike in oil. 

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According to data from Benzinga Pro: 

• Schlumberger NV (NYSE:SLB) is trading lower by 4.45% 
• Eni SpA (NYSE:E) is trading lower by 4.77%
• Occidental Petroleum Corporation (NYSE:OXY) is trading lower by 3.35%

• Pioneer Natural Resources Co (NYSE:PXD) is trading lower by 2.80%

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