Oil Selloff Sharpens.
London, Monday, 2 May 2022
Concerns over slowing economic growth in top importer China outweighed fears of supply disruptions from a possible EU embargo on Russian oil, as WTI crude futures slid over 3% to about $101 per barrel on Monday, retreating further from a recent high.
Due to Covid lockdowns, factory activity in China fell for the second month in a row to its lowest level since February 2020, escalating concerns about sluggish demand.
Libya's National Oil Corp said Sunday that it would temporarily resume operations at the Zueitina oil terminal after stopping operations in late April due to political unrest, adding to pessimistic mood.
Meanwhile, after conversations over the weekend, the EU is said to be moving toward a ban on Russian oil imports by the end of the year. In 2020, Russia will supply roughly one-fourth of the EU's oil imports, with 4.7 million barrels per day of crude exports to the EU.
(Written and edited by: The Decision Maker)