Oil opens the week with a fall of more than 1% due to the strength of the dollar

Los oil prices They fell on Monday, dragged down by the strength of the US dollar, as a rise in coronavirus cases in China dashed hopes of a swift reopening of the economy of the world’s biggest crude importer.

crude oil futures Brent They were down $1.01, or 1.1%, to $94.98 a barrel at 10:30 GMT, after gaining 1.1% on Friday. WTI crude oil futures were down $1.11, or 1.3%, at $87.85, after advancing 2.9% on Friday.

Commodity prices rose on Friday after China’s National Health Commission adjusted its Covid-19 prevention and control measures to shorten quarantine times for close contacts of cases and incoming travelers.

However, Covid cases spiked in China over the weekend, with Beijing and other big cities recording record numbers of infections on Monday.

Chinese demand for oil from Saudi Arabia also remained weak with several refiners asking to lift less crude in December.

On the other hand, the US Secretary of the Treasury, Janet Yellensaid on Friday that India can continue to buy as much Russian oil as it wants, even at values ​​above the G7 price cap mechanism, if it distances itself from Western insurance, financial and maritime services associated with the measure.

Also weighing on oil was the strength of the dollar following comments by US Federal Reserve Governor Christopher Waller, who said on Sunday that the Fed may consider slowing the pace of rate hikes at its next meeting, but that this should not be seen as a weakening of its commitment to reduce inflation.

erp