The dollar hit a new two-decade high, making it more expensive a barrel for holders of other currencies.
Global financial markets have been hit by concerns about rising interest rates and the recession, which has pushed up the value of the US dollar against other currencies.
The tightening of the Fed’s monetary policy and the extension of the confinements due to the Covid-19 China caused a lower growth in the exports of the Asian power.
“The coronavirus lockdowns in China are severely impacting the oil market, which is seeing a selloff in line with equity markets,” said Andrew Lipow, president of Lipow Oil Associated in Houston.
China’s oil imports in the first four months of 2022 fell 4.8% compared to the same period a year ago, although during April purchases rose almost 7%.
In Russia, oil production increased in early May compared to April, stabilizing, according to Deputy Prime Minister Alexander Novak, after falling in April as a result of Western sanctions imposed by the crisis in Ukraine.
On the supply side, Saudi Arabia, the world’s leading oil exporter, lowered oil prices for Asia and Europe in June.
Last week, the European Commission proposed a gradual embargo on Russian oil, boosting Brent and WTI prices for the second week in a row. However, the proposal requires a unanimous vote among bloc members this week, which has not yet occurred.
Source: Ambito
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