Oil prices fell on Monday in sluggish trade due to holidays in Asia, following fears of slowing economic growth in China, the world’s largest oil importer, outweighed fears of possible supply disruptions from the looming European Union ban on Russian crude oil. .
Brent crude futures fell $13.1, or 1.1 percent, to $106.01 a barrel by 05:11 GMT, while US West Texas Intermediate crude futures fell $1, or 1%, to $103.69 a barrel.
Markets in Japan, India and across Southeast Asia were closed for public holidays on Monday.
Prices fell following China published data – the day before yesterday, Saturday – showing that factory activity in the second largest economy in the world contracted for the second month to its lowest level since February 2020 due to the closures to combat Covid-19.
In terms of supplies, the National Oil Corporation in Libya announced – in a statement yesterday – that it had “temporarily” lifted the state of force majeure and resumed operations at the Zueitina oil port in order to reduce stocks and “empty tanks.”
And the state oil company warned – on Saturday – of an “environmental disaster that may occur” at the port.
In late April, the corporation declared force majeure at the port and warned that a “painful wave of closures” had begun to hit its facilities due to the political confrontation.