A barrel (159 liters) of Brent from the North Sea cost 120.26 dollars on Monday morning, 1.75 dollars less than on Thursday. The price per barrel of US West Texas Intermediate (WTI) fell $1.82 to $118.85 per barrel.
The strong dollar is weighing on oil demand, as a strong US currency makes crude oil more expensive for buyers outside the dollar zone, driving prices down. The dollar is benefiting from the prospect of significant interest rate hikes from the US central bank due to high inflation.
Another factor is the health situation in China, one of the biggest oil consumers in the world. The metropolises of Beijing and Shanghai again reported an increasing number of contaminations. It is to be feared that possible new confinements will weigh on demand.