|
Brent crude futures were down $1.01, or 1.1%, at $94.98 a barrel
by 1030 GMT after gaining 1.1% on Friday. WTI crude futures fell
$1.11, or 1.3%, to $87.85 after advancing 2.9% on Friday.
"U.S. dollar strength appears to be weighing on oil and the
broader commodities complex this afternoon," said Warren
Patterson, head of commodities strategy at ING.
"There probably is also an element where the market got a bit
ahead of itself on Friday following an easing in China's COVID-related
quarantine measures."
Commodities prices rallied on Friday after China's National
Health Commission adjusted its COVID prevention and control
measures to shorten quarantine times for close contacts of cases
and inbound travelers.
But COVID-19 cases climbed in China over the weekend, with
Beijing and other big cities on Monday reporting record
infections.
China's demand for oil from top exporter Saudi Arabia also
remained weak, with several refiners having asked to lift less
crude in December.
Separately, U.S. Treasury Secretary Janet Yellen on Friday said
that India can continue buying as much Russian oil as it wants,
including at prices above a G7-imposed price cap mechanism, if
it steers clear of Western insurance, finance and maritime
services bound by the cap.
Also weighing on oil was dollar strength after comments from
U.S. Federal Reserve Governor Christopher Waller, who said on
Sunday that the Fed could consider slowing the pace of rate
increases at its next meeting, but that should not be seen as a
softening in its commitment to lower inflation.
"This leans towards the sticky inflation or recession narrative,
which is negative for oil and other risk markets," said SPI
Asset Management managing director Stephen Innes.
(Reporting by Noah Browning; Additional reporting by Florence
Tan and Emily Chow; Editing by David Goodman)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
