Oil Dips On China Ongoing Lockdowns – 9 May, 2022

Oil prices fell at the beginning of the week in Asian trading adding to a 6% slump in the previous session as coronavirus lockdowns in top oil importer China and potential economic disturbances in Europe fed worries about the demand outlook. Brent crude was down 0.3% or 36 cents to $105.58 per barrel. U.S. West Texas Intermediate fell 0.2% or 23 cents to $102.86 per barrel. Prices fell by over $1 earlier, however both contracts are still up roughly 35% for the year. Financial markets are heeding concerns that further curtailing Russian oil imports following the nation’s invasion of Ukraine could push some European nations into economic distress. The European Commission proposed an embargo on Russian oil which boosted Brent and WTI for a second straight week, however there needs to be a unanimous vote by EU members this week to pass. Crude imports by China in the first four months of 2022 fell 4.8% from a year ago, but April imports were up nearly 7%.