Oil prices fall due to global economic concerns

Oil prices fell on Monday along with stock markets in Asia on fears that a global recession could slash oil demand, while investors looked ahead to European Union talks on a Russian oil embargo that is expected to tighten global supplies.

By 0153 GMT, Brent crude prices fell 28 cents, or 0.3 percent, to $112.11 a barrel.

US West Texas Intermediate crude was $ 109.36 a barrel, down 41 cents, or 0.4 percent.

The global financial markets are also turbulent due to concerns about interest rate hikes and lockdown measures due to COVID-19 in China, which are hurting the world’s second-largest economy.

“The ongoing shutdowns in China may continue to affect oil prices in the near term,” Teng said. She added that Saudi Arabia’s price cut also reflected concerns about global oil demand.

Saudi Arabia, the world’s largest oil exporter, cut crude prices for Asia and Europe for June on Sunday.

Brent and US crude rose last week for the second week in a row on concerns about supplies after the European Commission proposed a phased ban on Russian oil as part of a package of tougher sanctions due to the war in Ukraine. The proposal requires a unanimous vote among EU members.