Sticker shows crude oil on the side of a storage tank in the Permian Basin in Menton, Lowing County, Texas, USA, November 22, 2019. REUTERS / Angus Mordant
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- China’s oil imports rose in April, but worries about demand remain
- Dollar at a new high for two decades
- The EU will continue negotiations on a plan for a Russian oil embargo
- Saudi Arabia cuts crude oil prices for Asia and Europe in June
NEW YORK, May 9 (Reuters) – Oil prices fell about 6 percent on Monday, along with stocks, as continued coronavirus blockades in China, China’s largest oil importer, fuel concerns about prospects for demand.
Brent crude fell $ 6.45, or 5.7 percent, to $ 105.94 a barrel. US crude oil West Texas Intermediate fell $ 6.68, or 6.1 percent, to $ 103.09 a barrel. Both contracts have won about 35% so far this year.
Global financial markets feared fears about rising interest rates and fears of a recession, as tighter and broader blockades of COVID-19 in China led to slower growth in exports to the world’s No. 2 economy in April. Read more
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“COVID’s lock in China is having a negative impact on the stock market,” said Andrew Lipow, president of Lipow Oil Associated in Houston.
Imports of crude oil from China in the first four months of 2022 decreased by 4.8% compared to last year, but imports in April increased by nearly 7%. Read more
Iranian oil imports from China reached peak volumes in late 2021 and early 2022 in April as demand from independent refineries weakened as the COVID blockade reduced fuel margins and rising Russian oil imports. with lower prices. Read more
Wall Street stock indices fell and the dollar peaked in two decades, making oil more expensive for holders of other currencies.
Saudi Arabia, the world’s largest oil exporter, cut crude oil prices for Asia and Europe in June. Read more
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 as Western countries imposed sanctions over the crisis in Ukraine.
EU RUSSIA OIL EMBARGO
Last week, the European Commission proposed a phased embargo on Russian oil, raising Brent and WTI prices for the second week in a row. The proposal needs a unanimous vote by EU members this week to be approved.
The European Commission is considering offering landlocked Eastern European Union more money to modernize oil infrastructure in a bid to persuade them to agree, an EU source told Reuters. Read more
The EU oil embargo will cause seismic change in European and global crude oil markets, which Rystad Energy expects to reduce crude oil imports from Russia by up to 3.0 million barrels per day by December 2022. of policy, “said Bjornar Tonhaugen, head of Rystad Energy’s oil market research.
German officials are quietly preparing for any sudden shutdown of Russian gas supplies with an emergency package, which could include taking control of critical companies, three people familiar with the matter told Reuters. Read more
Japan, which is the largest importer of crude oil, will ban imports of Russian crude oil “in principle,” Prime Minister Fumio Kishida said, adding that it would take time. Read more
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Report by Stephanie Kelly; additional reports by Shadia Nasrallah and Florence Tan; edited by David Evans, David Gregorio and Marguerite Choi
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