Oil tumbles on global economic worries, strong dollar

FILE PHOTO: A sticker reads crude oil on the side of a storage tank in the Permian Basin in Mentone, Loving County, Texas, U.S. November 22, 2019. Picture taken November 22, 2019. REUTERS/Angus Mordant

May 10 (Reuters) – Oil prices tumbling more than 1% 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 fell $1.31, or 1.2%, to $104.63 at 0216 GMT after slipping to as low as $103.19.

U.S. West Texas Intermediate crude fell $1.25, or 1.2%, to $101.84 a barrel after hitting an intraday low of $100.44.

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

The fall in oil prices reflected trends in global financial markets as investors shed riskier assets on worries about higher interest rates and their impact on economic growth.

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

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

(Source: Reuters )

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