Brent hovers near three-week trough on global demand concerns

International benchmark Brent prices fell in European trade, resuming losses after a short hiatus on Friday on short-covering off three-week lows.

The decline comes amid concerns about slower demand on fuel worldwide, as global central banks extend policy tightening and rate hikes. 

Prices Today

Brent fell 1.3% to $80.33 a barrel, with a session-high at $81.63, after rising 0.75% on Friday, the first profit in five days away from three-week lows at $80.24. 

Brent tumbled 5.8% last week, the first weekly loss in five weeks, and the largest weekly loss since early March on economic concerns while Kurdish exports resume.

US Economy

The Beige Book, released by the Federal Reserve, noted how US economic activities stalled in recent weeks with employment growth slowing down and prices as well slowing down considerably.

Kurdish Exports

The Iraqi Federal Government took an important step with the Kurdistan region to solve the ongoing legal dispute and resume northern oil shipment through Turkey.

The dispute dented oil exports from the region by nearly 450 thousand bpd last month, after Turkey halted oil going through its pipelines following a court order.

Global Demand

Central banks in the US, UK, and Europe are expected to hike interest rates when they convene in May to combat stubbornly high inflation.

Such aggressive moves will in turn hurt economic activities and fuel demand worldwide.