Oil extends losses on growth concerns and Shanghai lockdown | Reuters

Oil extends losses on growth concerns and Shanghai lockdown | Reuters

Oil slipped on Friday, burdened by the prospect of weaker global growth, higher interest rates and COVID-19 lockdowns in China hurting demand even as the European Union considers a ban on Russian oil that would further tighten supply.

The International Monetary Fund this week cut its global economic growth forecast while the U.S. Federal Reserve Chair on Thursday said that a half-point increase to interest rates "will be on the table" at the next Fed policy meeting in May. read more

Brent crude was down $1.73, or 1.6%, at $106.60 a barrel by 1045 GMT. U.S. West Texas Intermediate (WTI) crude declined $1.89, or 1.8%, to $101.09.

"At this stage, fears over China's growth and overtightening by the Fed, capping U.S. growth, seem to be balancing out concerns that Europe will soon widen sanctions on Russian energy imports," said Jeffrey Halley, analyst at brokerage OANDA.