Oil edges lower as economic worries, strong dollar weigh

FILE PHOTO: A maze of crude oil pipes and valves is pictured during a tour by the Department of Energy at the Strategic Petroleum Reserve in Freeport, Texas, U.S. June 9, 2016. REUTERS/Richard Carson – S1AETIZMOIAB/File Photo

SULAIMANI (ESTA) — Oil prices edged lower on Tuesday, extending the previous day’s steep declines as coronavirus lockdowns in top oil importer China, a strong dollar and growing recession risks fed worries about the outlook for global demand.

Brent crude was down 42 cents at $105.5 a barrel at 0932 GMT after slipping to as low as $103.19.

U.S. West Texas Intermediate crude fell 30 cents to $102.8 a barrel after hitting an intraday low of $100.44.

On Monday, both benchmarks posted their biggest daily percentage falls since March, dropping by 5% to 6%, according to Reuters.

The falls reflected trends in global financial markets, as investors shed riskier assets on worries about interest rate rises and resulting impact on economic growth.

The dollar held near 20-year highs, making oil more expensive for holders of other currencies, Reuters reported.

“China’s COVID situation, rising rates and growing recession risks are not helping risk assets,” Reuters quoted Warren Patterson, head of ING commodities research, as saying.

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