In afternoon deals, United States benchmark oil West Texas Intermediate traded lower at $92.93 a barrel and European Brent at $97.57.
In afternoon deals, United States benchmark oil West Texas Intermediate traded lower at $92.93 a barrel and European Brent at $97.57.
Oil sank on Monday on fears of demand from China, the recent release of strategic reserves and a lackluster expectation of a European embargo on Russian supplies in the wake of the Ukraine war.
In afternoon deals, United States benchmark oil West Texas Intermediate traded lower at $92.93 a barrel and European Brent at $97.57.
“This is above all the bad news from China, which is weighing on prices, as the number of COVID-19 cases continues to rise,” said Commerzbank analyst Barbara Lambrecht.
“Lockdowns that slow oil demand in the world’s second-largest consumer country threaten to last even longer.”
Shanghai eased restrictions in some areas on Monday after growing outrage over China’s flexible COVID-19 rules that locked down 25 million people and raised fears over demand for energy.
The International Energy Agency said last week that rich countries would meanwhile tap an additional 120 million barrels of oil from emergency reserves to calm prices.
The move included Washington’s recent announcement of the release of 60 million barrels.
“Oil prices are turning lower as traders continue to weigh strategic stock releases and cooling demand in China,” City Index Fiona Cincotta said on Monday.
“The continued dripping … is going some way to quell supply fears and plug some of the Russian supplies absent from the market.”
Kyiv wants the European Union to agree sanctions on Russian oil and gas in retaliation for Moscow’s attack on Ukraine.
Analysts have warned that such a move could push prices higher above current price levels.
“Oil is likely to settle around these levels, unless of course the EU decides to impose sanctions on Russian oil imports,” Cincotta told AFP.
“This will once again be a catalyst for an uptick in oil prices.”
Oil reached close to $140 a barrel in early March after Moscow’s attack on Ukraine.
Russia is a major crude oil supplier and a major member of the OPEC+ group of global producers.