Daily Times

Crude oil prices fell over two percent on Monday amid continued Covid-19 lockdowns in China, a strong US dollar and reports about sparing a few European nations from an embargo on buying Russian oil. As of 1320 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, shed $2.40 (-2.14 percent) to reach 109.99 a barrel. The West Texas Intermediate (WTI), the main oil benchmark for North America, decreased to $107.24 a barrel, down by $2.53 (-2.30 percent). Both contracts notched a gain of around five percent during the last week and have gained over 40 percent so far this year. The price for Opec basket was recorded at $114.37 a barrel with a gain of 1.18 percent. The OPEC Reference Basket of Crudes (ORB) is made up of Saharan Blend, Girassol, Djeno, Zafiro, Rabi Light, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny Light, Arab Light, Murban and Merey. Arab Light was available at $111.17 a barrel with a decrease of 3.36 percent and the price of Russian Sokol surged to $100.70 a barrel with a 0.89 percent increase. China, the world’s second-largest economy and biggest crude importer, is experiencing a wave of Covid-19 infections and has introduced strict movement curbs in major cities such as Shanghai and Beijing as part of its “zero-Covid” strategy. There are currently no signs that the country is willing to ease movement restrictions that are slowing its economic growth momentum and piling pressure on already strained global supply chains. The European Commission may spare Hungary and Slovakia from an embargo on buying Russian oil, now under preparation, wary of how dependent the two countries are on Russian crude. Europe is the destination for nearly half of Russia’s crude and petroleum product exports — providing Moscow with a huge source of revenue that countries including Latvia and Poland say must be cut, to stop funding its military action in Ukraine.