Oil prices fell on Monday due to weak trade due to the holidays in Asia, after the concerns about the slowdown in economic growth in China, the world’s largest oil importer, has overcome fears of possible supply disruptions due to a looming EU embargo on crude oil.
China’s tough measures to curb the spread of COVID-19 also threaten to deal another blow to economic activity and demand.
THE future on Brent crude oil fell $ 23.3, or 3%, to $ 103.91 a barrel by 1236 GMT, while future on US West Texas Intermediate crude oil fell $ 3.41, or 3.2%, to $ 101.28 a barrel.
The markets in Japan, India and in all of Southeast Asia are closed for public holidays on Mondays.
Prices fell after China released data Saturday showing that factory activity in the world’s second largest economy contracted for a second month to its lowest level since February 2020, due to the lockdown to fight the COVID-19.
On the supply front, the National Oil Corporation on Sunday of Libya announced in a declaration of having “temporarily” lifted the state of force majeure and resumed operations in the oil port of Zueitina in order to reduce stocks and “empty the tanks”.
On Saturday, the state-owned oil company warned of an “environmental disaster” that could occur at the port.
In late April, the company declared force majeure at the port and warned that a “painful wave of closures” had begun affecting its facilities due to political confrontation.
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