Oil Prices, Equities Tumbles About 6%

Oil prices fell about 6% along with stocks on Monday as the ongoing lockdown of the coronavirus in China, the largest oil importer, raised concerns about the demand outlook.

Brent crude fell $6.45 to settle at $105.94 a barrel. Our West Texas Intermediate Crude fell $6.68  and settled at $103.09 a barrel. Both contracts have increased by about 35% so far this year.

Global financial markets have been plagued by rising interest rates and recessionary concerns as the lockdown of COVID-19 in China is causing slower export growth in the world's No 2 economy in the month of April.

China's oil imports from Iran in April began in late 2021 as the Covid lockdown squeezed fuel margins and increased imports of cheaper Russian oil, easing demand from independent refiners. It was below the peak amount toward the beginning of 2022.

Last week, the European Commission proposed a gradual embargo on Russian oil, pushing up prices for Brent and WTI for the second straight week. The proposal requires a unanimous vote by EU members to pass this week.