Oil prices fall amid fears of falling demand in China and the European Union is considering banning Russian oil

Oil prices fell on Tuesday under pressure from China’s COVID-19 shutdown that could affect demand, but prices found support from a possible European oil embargo on Russia over its invasion of Ukraine.

Beijing, which records dozens of new infections with the Coronavirus daily, is conducting mass examinations of the population to avoid imposing a closure similar to what Shanghai did last month. The capital’s restaurants were closed for eating inside, and some apartment complexes were closed.

Brent crude, the benchmark, fell $1.22, or 1.1 percent, to $106.36 a barrel at 0812 GMT. US West Texas Intermediate crude fell 50 cents, or 0.5 percent, to $104.67 a barrel.

“The positive driver is the EU ban and whether it will be announced,” said Vivek Dar, commodities analyst at the Commonwealth Bank.

“The negative driver is the lockdown in China due to Covid. Both are very important.”

Oil prices have hit multi-year highs this year, with Brent crude hitting $139 in March, the highest since 2008, after Moscow’s invasion of Ukraine exacerbated fears of supply shortages.