Oil prices decline, Brent sheds 4.5% on Chinese demand concerns

Oil prices fell in European trade, resuming the losses after a short hiatus on Friday, with US crude down 3%, while Brent shed over 4.5% on renewed concerns about demand in China, the world's largest oil importer.

Prices were pressured by dollar's gains against a basket of major rivals, which led investors await from high risk assets for the time being.

Global Prices

US crude fell 3% to $82.66 a barrel, while Brent declined over 4.5% to $89.07 a barrel.

US crude rose 0.2% on Friday while Brent added 0.9%, with the dollar hurt by bearish remarks by a Fed official.

Chinese Demand

Customs data showed China's crude oil imports were at 9.79 million bpd in September, down 2% from the previous year.

China continues to impose Covid 19 restrictions on the populations, which hamper trade and economic growth considerably and hurts fuel demand.

Global Recession

Earlier European and UK data today on manufacturing and services bolstered indications of a recession in the fourth quarter, in turn hurting fuel demand as well.

The Dollar

The dollar index rose 0.6% today away from three-week lows at 111.47 against a basket of major rivals.

Dollar remains a favorite among investors as the Federal Reserve remains set on increasing interest rates aggressively to control runaway inflation.