Prices were pressured by the dollar, which hit a new two-year high. A stronger dollar makes commodities priced in dollars more expensive for holders of other currencies, which may dampen demand.
Concerns about demand growth were also in the spotlight ahead of the release of the IMF’s World Economic Outlook on Tuesday.
“We expect lower growth forecasts due to the double whammy of the Ukrainian crisis and the ongoing coronavirus pandemic,” PVM analyst Stephen Brennock said in a note. US crude oil inventories likely rose last week, while distillate and gasoline stockpiles fell, according to a preliminary Reuters survey on Monday.
China’s economy slowed in March, however fuel demand in the world’s biggest oil importer could rebound as factories prepare to reopen in Shanghai.
The country’s National Oil Corp (NOC) warned on Monday of “a painful wave of closures” and declared force majeure on some production and exports, as eastern forces widened their blockade of the sector over a political standoff.
The possibility that the European Union vetoes Russian oil due to its invasion of Ukraine continued to keep the market on edge. French Economy Minister Bruno Le Maire said on Tuesday that an EU-level embargo on Russian oil was being prepared.
Source: Ambito
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