Oil prices fell more than two percent on Monday, continuing their large losses incurred last week, against the backdrop of the rise in the US dollar and fears that the global recovery in fuel demand may set back due to new restrictions to confront the pandemic in Asia, especially in China.
Brent crude futures fell $1.52, or 2.2 percent, to $69.17 a barrel, after falling 6 percent last week in their biggest loss in four months.
According to “Reuters”, US West Texas Intermediate crude futures fell $1.64, or 2.4 percent, to $66.64 a barrel, after falling nearly 7 percent last week, the biggest decline in nine months.
“Concerns about a possible decline in global oil demand have resurfaced with the acceleration of infection rates with the Delta strain,” RBC analyst Gordon Ramsay said in a note.
ANZ analysts cited new restrictions in China, the world’s second-largest oil consumer, as a major factor clouding demand growth prospects.
The restrictions included flight cancellations, travel warnings issued by 46 cities, and restrictions on public transportation and taxi services in 144 of the worst-hit areas.
Adding to the pessimism, data released at the weekend revealed that China’s export growth slowed more than expected in July following the outbreak of COVID-19 and Seoul, while import growth was also slower than expected.
Saturday’s data showed that China’s imports of crude oil fell slightly on a daily basis in July to 9.71 million barrels per day, falling below 10 million barrels per day for the fourth consecutive month and falling sharply from a record level of 12.94 million barrels per day in June 2020 when refiners were Cheap raw stock.
The US dollar’s rise to a four-month high against the euro also put pressure on crude prices, after a stronger-than-expected US jobs report on Friday raised bets that the Federal Reserve may move quickly to tighten monetary policy in the United States.
A higher dollar would increase the cost of oil to holders of other currencies.
Trading was quiet in light of the holidays in Japan and Singapore.
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