Oil prices are falling, burdened by the dollar, closing China Reuters


© Reuters. PHOTO FILE: Label showing crude oil on tank side at Permian Mentone Basin, Loving County, Texas, USA, November 22, 2019. Image taken on November 22, 2019. REUTERS / Angus Mordant

Author: Shadia Nasralla

LONDON (Reuters) – Oil prices fell on Monday along with stocks and burdened by a strong dollar and concerns over demand over the continued blockade due to coronavirus in China, the world’s largest oil importer.

it fell $ 1.83, or 1.6%, to $ 110.56 a barrel by 09:53 GMT. U.S. West Texas Intermediate oil was at $ 107.7 a barrel, down $ 2.07 or 1.9%. Both contracts have received over 40% so far this year.

The dollar, which reached a fresh value of two decades, has made oil more expensive for owners of other currencies. [MKTS/GLOB]

Global financial markets are gripped by concerns about rising interest rates and worries about the recession as tighter and broader blockades on COVID-19 in China led to slower export growth in the No. 2 world economy in April.

In Russia, oil production rose in early May compared to April, and production stabilized, Deputy Prime Minister Alexander Novak said after production fell in April following Western sanctions imposed over the Ukrainian crisis.

Crude oil imports from China fell 4.8% in the first four months compared to last year, but included a nearly 7% increase in April.

In terms of supply, Saudi Arabia, the world’s largest oil exporter, cut crude oil prices for Asia and Europe in June.

EU OIL EMBARGO RUSSIA

Last week, the European Commission proposed a gradual embargo on Russian oil, raising Brent and WTI prices for the second week in a row. However, the proposal requires a unanimous vote among EU members this week, which has not yet happened.

The EU proposal was followed by a promise by G7 countries on Sunday to ban or phase out Russian oil imports. Washington has also imposed new sanctions.

Japan, part of the G7 and one of the world’s five largest importers of crude oil, will ban the import of Russian crude “in principle,” Prime Minister Fumio Kishida said, adding that it would take time.

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