Oil prices fell more than $1 in Asia Monday morning, reflecting global economic concerns and pressure on oil demand growth.
Investors are watching this week’s G7 meeting for possible changes in Russian oil exports and a revival of the Iran nuclear deal.
- Brent crude fell $1.42, or 1.3%, to $111.70 a barrel, after gaining 2.8% on Friday.
- WTI crude was $106.08 a barrel, down $1.54, or 1.4%, after gaining 3.2% last week.
Both contracts fell as interest rate hikes in major economies strengthened the dollar and raised fears of a recession in the economy.
However, oil prices continued to receive favorable support above $100 per barrel. This is due to the fact that the supply of crude oil and oil products remains tight after Western sanctions have denied some buyers access to Russian oil.
The G7 countries will this week discuss ways to counter rising energy prices and replace Russian oil and gas imports. This includes additional sanctions that do not exacerbate inflation.
These measures include potential price restrictions on Russian exports of crude oil and oil products aimed at reducing Russian revenues while minimizing damage to other economies.
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Monday, June 27, 2022