New partial shutdowns in Shanghai raise concerns about oil demand. Against this backdrop, prices fell on Friday but remain near their highest levels in three months.

Brent crude for August was down $1.01, or 0.8%, at $122.06 a barrel at 0141 GMT after falling 0.4% the previous day. U.S. West Texas Intermediate crude for July lost 98 cents, or 0.8%, to $120.53 a barrel, after falling 0.5% on Thursday. Both benchmarks posted their highest closes Wednesday since March 8, when they hit their highest levels since 2008.

Shanghai and Beijing returned to COVID-19 alert status Thursday after parts of China's largest economic center imposed new lockdown restrictions and the city announced a series of mass tests for millions of residents.

China's crude oil imports rose nearly 12 percent in May from a low base a year earlier, though refiners are still struggling with high inventories as COVID-19 containment measures and a slowing economy weighed on fuel demand last month. Meanwhile, peak summer gasoline demand in the U.S. continues to drive up crude prices.