Crude Oil Falls on China Growth Worries – EU to Ban Russian Oil Imports

Oil prices fell in Asia on Monday, due to the stagnation of trade in Asia caused by concerns about the slowdown of economic growth in China, the world’s largest importer of oil. There are also fears that supplies could be disrupted by the ban on Russian crude in the EU.

  • Brent crude fell $1.21, or 1.1 percent, to $105.93.
  • WT crude futures fell 99 cents, or 1%, to $103.70 a barrel.

Markets in Japan, India and across Southeast Asia are closed for public holidays on Monday.

Prices fell after China released data on Saturday that showed factory activity in the world’s second largest economy shrank for the second month to its lowest level since February 2020 due to the COVID lockdowns.

On the supply side, Libya’s National Oil Corp (NOC) said on Sunday it would temporarily resume operations at the Zueitina oil terminal to reduce stock in storage tanks to avoid an imminent environmental disaster at the port.

The European Union said that capping oil prices on the downside could affect supplies to the EU, which is likely to ban Russian oil imports by the end of the year.

About half of Russia’s crude oil exports of 4.7 million barrels per day go to the European Union. They account for about a quarter of the EU’s oil imports in 2020.

Meanwhile, Western countries control Russian oil purchases as sanctions affect shipping and insurance of the country’s exports. However, the impact on global supply was mitigated as India absorbed Russian goods at lower prices.

On Friday, Indian refiners negotiated a six-month oil deal with Russia to import millions of barrels of oil per month.

The spot Market is Open

Monday, May 1, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
19.10

100.87

-3.82

-3.65%

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