Oil prices fall, weighed down by dollar, China lockdowns | Reuters

Oil prices fall, weighed down by dollar, China lockdowns | Reuters

Oil prices slipped on Monday alongside equities and weighed down by a strong dollar and demand concerns on the back of continued coronavirus lockdowns in China, the world top oil importer.

Brent crude fell $2.27, or 2%, to $110.12 a barrel by 1222 GMT. U.S. West Texas Intermediate crude was at $107.38a barrel, down $2.39, or 2.2%. Both contracts have gained over 40% so far this year.

The dollar hitting a fresh two-decade high made oil more expensive for holders of other currencies.

Global financial markets have been spooked by concerns over interest rate hikes and recession worries as tighter and wider COVID-19 lockdowns in China led to slower export growth in the world's No. 2 economy in April. read more

"The full extent of Chinese oil demand destruction has yet to be felt," said PVM analyst Stephen Brennock, adding he expected oil demand forecasts from the International Energy Agency and others to be revised down in upcoming data releases.