Oil slumps 4% as Shanghai lockdowns stoke demand fears | Reuters
Oil slumped about 4% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.
"The prospect of slower economic growth this year amid U.S. interest-rate hikes ... has already led to a downward revision of oil-demand forecasts," analysts at the Eurasia Group consultancy said, noting "The longer the Ukraine war and the China lockdowns persist, the higher the risk that demand growth will be even weaker."
Shanghai's COVID-19 lockdown misery dragged into a fourth week, as orders for mass testing in Beijing's biggest district sparked fears that the Chinese capital could be destined for a similar fate. read more
China is the world's biggest oil importer.
Brent futures fell $4.33, or 4.1%, to settle at $102.32 a barrel, while U.S. West Texas Intermediate (WTI) crude fell $3.53, or 3.5%, to settle at $98.54.
Monday 25 April 2022
Before Giving Billions to Jared Kushner, #Saudi Investment Fund Had Big Doubts - The New York Times
Before Giving Billions to Jared Kushner, Saudi Investment Fund Had Big Doubts - The New York Times
Six months after leaving the White House, Jared Kushner secured a $2 billion investment from a fund led by the Saudi crown prince, a close ally during the Trump administration, despite objections from the fund’s advisers about the merits of the deal.
A panel that screens investments for the main Saudi sovereign wealth fund cited concerns about the proposed deal with Mr. Kushner’s newly formed private equity firm, Affinity Partners, previously undisclosed documents show.
Those objections included: “the inexperience of the Affinity Fund management”; the possibility that the kingdom would be responsible for “the bulk of the investment and risk”; due diligence on the fledgling firm’s operations that found them “unsatisfactory in all aspects”; a proposed asset management fee that “seems excessive”; and “public relations risks” from Mr. Kushner’s prior role as a senior adviser to his father-in-law, former President Donald J. Trump, according to minutes of the panel’s meeting last June 30.
But days later the full board of the $620 billion Public Investment Fund — led by Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler and a beneficiary of Mr. Kushner’s support when he worked as a White House adviser — overruled the panel.
Six months after leaving the White House, Jared Kushner secured a $2 billion investment from a fund led by the Saudi crown prince, a close ally during the Trump administration, despite objections from the fund’s advisers about the merits of the deal.
A panel that screens investments for the main Saudi sovereign wealth fund cited concerns about the proposed deal with Mr. Kushner’s newly formed private equity firm, Affinity Partners, previously undisclosed documents show.
Those objections included: “the inexperience of the Affinity Fund management”; the possibility that the kingdom would be responsible for “the bulk of the investment and risk”; due diligence on the fledgling firm’s operations that found them “unsatisfactory in all aspects”; a proposed asset management fee that “seems excessive”; and “public relations risks” from Mr. Kushner’s prior role as a senior adviser to his father-in-law, former President Donald J. Trump, according to minutes of the panel’s meeting last June 30.
But days later the full board of the $620 billion Public Investment Fund — led by Crown Prince Mohammed bin Salman, Saudi Arabia’s de facto ruler and a beneficiary of Mr. Kushner’s support when he worked as a White House adviser — overruled the panel.
Elon Musk Texts With #Saudi’s PIF Shed Light Around Taking Tesla Private Tweets - Bloomberg
Elon Musk Texts With Saudi’s PIF Shed Light Around Taking Tesla Private Tweets - Bloomberg
The back-and-forth continues. Al-Rumayyan tells Musk that “we cannot approve something that we don’t have sufficient information on,” and writes that he’s been waiting for more details. Later in the exchange, Al-Rumayyan asks Musk to “read the article please.”
“I read the article,” Musk says. “It is weak sauce and still makes me sound like a liar. It is filled with equivocation and in no way indicates the strong interest you conveyed in person.”
Musk told Al-Rumayyan that Tesla would move forward with private equity firm Silver Lake, Goldman Sachs Group Inc. and other investors. The next day, however, he published a blog post citing the Saudi PIF’s interest in taking Tesla private as the reason he tweeted that he had “funding secured.”
Al-Rumayyan texted that he was surprised Musk had divulged “loose information,” despite having signed a non-disclosure agreement and after keeping the PIF waiting for specifics needed to move forward with a deal. Musk scolded Al-Rumayyan again for not pushing back against media reports about whether the Saudi fund would support the go-private transaction.
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| Page 122 of a court document of a shareholder lawsuit against Elon Musk and Tesla details a string of text messages between Musk and the head of Saudi Arabia’s Public Investment Fund Source: Court Filing |
The back-and-forth continues. Al-Rumayyan tells Musk that “we cannot approve something that we don’t have sufficient information on,” and writes that he’s been waiting for more details. Later in the exchange, Al-Rumayyan asks Musk to “read the article please.”
“I read the article,” Musk says. “It is weak sauce and still makes me sound like a liar. It is filled with equivocation and in no way indicates the strong interest you conveyed in person.”
Musk told Al-Rumayyan that Tesla would move forward with private equity firm Silver Lake, Goldman Sachs Group Inc. and other investors. The next day, however, he published a blog post citing the Saudi PIF’s interest in taking Tesla private as the reason he tweeted that he had “funding secured.”
Al-Rumayyan texted that he was surprised Musk had divulged “loose information,” despite having signed a non-disclosure agreement and after keeping the PIF waiting for specifics needed to move forward with a deal. Musk scolded Al-Rumayyan again for not pushing back against media reports about whether the Saudi fund would support the go-private transaction.
Rising Oil Prices a Boon for #SaudiArabia's Economy - Bloomberg
Rising Oil Prices a Boon for Saudi Arabia's Economy - Bloomberg
Rising oil prices may be a deepening concern for most of the world, but it’s been a boon for Saudi Arabia’s economy and stock market.
The International Monetary Fund raised its estimate for the country’s economic growth by nearly three percentage points to 7.6%. The benchmark Tadawul All Share Index is the sixth best-performing gauge globally in 2022 and analysts say gains may not be over yet.
Russia’s war in Ukraine has pushed up fuel prices, the kingdom’s main source of income, to well above the level Saudi Arabia needs to balance its budget. As a result S&P Global Ratings has forecast the country will see its first surplus since 2013.
The rising prices however, have frustrated most of the rest of the world, particularly the U.S., in particular due to Saudi’s refusal to hike oil production. That has stoked tension already existing between the two. Saudi wants the U.S. to do more to counter missile attacks on the kingdom from Iran-backed Houthi rebels, and is wary of Washington’s attempts to revive a 2015 nuclear deal with Iran, its main regional rival.
The Saudis, however, have stressed that the relationship with the U.S. “is historic and remains strong.” And in what might be a complete turnaround for the region, Iran’s state-run Nour News reported that Iran and Saudi have resumed talks aimed at restoring ties to reduce regional tensions.
Rising oil prices may be a deepening concern for most of the world, but it’s been a boon for Saudi Arabia’s economy and stock market.
The International Monetary Fund raised its estimate for the country’s economic growth by nearly three percentage points to 7.6%. The benchmark Tadawul All Share Index is the sixth best-performing gauge globally in 2022 and analysts say gains may not be over yet.
Russia’s war in Ukraine has pushed up fuel prices, the kingdom’s main source of income, to well above the level Saudi Arabia needs to balance its budget. As a result S&P Global Ratings has forecast the country will see its first surplus since 2013.
The rising prices however, have frustrated most of the rest of the world, particularly the U.S., in particular due to Saudi’s refusal to hike oil production. That has stoked tension already existing between the two. Saudi wants the U.S. to do more to counter missile attacks on the kingdom from Iran-backed Houthi rebels, and is wary of Washington’s attempts to revive a 2015 nuclear deal with Iran, its main regional rival.
The Saudis, however, have stressed that the relationship with the U.S. “is historic and remains strong.” And in what might be a complete turnaround for the region, Iran’s state-run Nour News reported that Iran and Saudi have resumed talks aimed at restoring ties to reduce regional tensions.
#AbuDhabi Commercial Bank's quarterly net profit up 32% | Reuters
Abu Dhabi Commercial Bank's quarterly net profit up 32% | Reuters
Abu Dhabi Commercial Bank (ADCB), the third-largest lender in the United Arab Emirates, on Monday reported a 32% increase in first-quarter profit on higher net fees and commission.
The lender reported net profit of 1.483 billion dirhams ($391.55 million) for the three months to March 31, up from 1.121 billion dirhams in the same period last year.
Net fees and commission income was up 10% year on year, mainly attributable to a significant increase in trade finance commission as well as higher loan processing and card-related fees, it said.
Banks in the United Arab Emirates are making a swift recovery in earnings as the economy rebounds from the worst of the COVID-19 pandemic, with oil prices having surged and the Expo world fair having boosted tourism.
Abu Dhabi Commercial Bank (ADCB), the third-largest lender in the United Arab Emirates, on Monday reported a 32% increase in first-quarter profit on higher net fees and commission.
The lender reported net profit of 1.483 billion dirhams ($391.55 million) for the three months to March 31, up from 1.121 billion dirhams in the same period last year.
Net fees and commission income was up 10% year on year, mainly attributable to a significant increase in trade finance commission as well as higher loan processing and card-related fees, it said.
Banks in the United Arab Emirates are making a swift recovery in earnings as the economy rebounds from the worst of the COVID-19 pandemic, with oil prices having surged and the Expo world fair having boosted tourism.
#Dubai’s ICD Said to Explore Sale of $1 Billion IT Services Firm - Bloomberg
Dubai’s ICD Said to Explore Sale of $1 Billion IT Services Firm - Bloomberg
Dubai’s sovereign wealth fund is exploring a potential sale of British software services company SmartStream Technologies Group, according to people familiar with the matter.
Investment Corp. of Dubai is working with advisers at Deutsche Bank AG to identify potential suitors for the business, the people said, asking not to be identified as the matter is private. SmartStream’s owner is seeking about $1 billion in a potential sale that could draw both financial and strategic investors, the people said.
No final decisions have been made, and the fund may decide to retain the asset if it fails to find suitable bidders, the people said. A representative for ICD wasn’t immediately available for comment, while a Deutsche Bank spokesperson declined to comment.
A Dubai state entity initially bought SmartStream in 2007 from private equity firm TA Associates after the U.K. firm scrapped its initial public offering. SmartStream’s ownership was then transferred to ICD and the wealth fund currently controls the company, which specializes in providing software solutions to the financial industry.
Dubai is working on an ambitious plan to privatize as many as 10 firms to raise cash and revive its capital markets. The city’s main power and water company raised $6.1 billion in the world’s second-biggest initial public offering this year, defying a global slowdown in listings.
Dubai’s sovereign wealth fund is exploring a potential sale of British software services company SmartStream Technologies Group, according to people familiar with the matter.
Investment Corp. of Dubai is working with advisers at Deutsche Bank AG to identify potential suitors for the business, the people said, asking not to be identified as the matter is private. SmartStream’s owner is seeking about $1 billion in a potential sale that could draw both financial and strategic investors, the people said.
No final decisions have been made, and the fund may decide to retain the asset if it fails to find suitable bidders, the people said. A representative for ICD wasn’t immediately available for comment, while a Deutsche Bank spokesperson declined to comment.
A Dubai state entity initially bought SmartStream in 2007 from private equity firm TA Associates after the U.K. firm scrapped its initial public offering. SmartStream’s ownership was then transferred to ICD and the wealth fund currently controls the company, which specializes in providing software solutions to the financial industry.
Dubai is working on an ambitious plan to privatize as many as 10 firms to raise cash and revive its capital markets. The city’s main power and water company raised $6.1 billion in the world’s second-biggest initial public offering this year, defying a global slowdown in listings.
Most Gulf bourses fall as oil prices plunge | Reuters
Most Gulf bourses fall as oil prices plunge | Reuters
Most stock markets in the Gulf ended lower on Monday, tracking global shares, as oil prices tumbled nearly 5% on concerns over the impact of rising interest rates and China's COVID-19 lockdowns on global economic growth.
Asian markets suffered their worst session in over a month as worries that Beijing could soon be back in a lockdown sent Chinese shares back to 2020 lows, and as the effects of Wall Street's 2.5% slump on Friday lingered.
The Qatari benchmark (.QSI) ended 1.6% lower, extending losses from the previous session, as all stocks but one on the index were in negative territory.
Qatar International Islamic Bank (QIIB.QA) slid 4% and was the biggest percentage decliner on the index, despite reporting a rise in first-quarter net profit.
The Abu Dhabi index (.FTFADGI) dropped 0.9%, hit by a 2.1% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) declined 0.8%, snapping a four-day winning streak, with blue-chip developer Emaar Properties (EMAR.DU) losing 0.8%.
Crude prices, a key catalyst for the Gulf's financial markets, hit a near two-week low on demand worries.
Saudi Arabia's benchmark index (.TASI), however, bucked the trend to close 0.6% higher, led by a 2.1% jump in Islamic lender Al Rajhi Bank (1120.SE).
The Saudi stock market was mixed as investors' sentiment tilted between the strong fundamentals and international concerns, said Wael Makarem, senior market strategist at Exness.
On other hand, Saudi Kayan Petrochemical Company (2350.SE) plunged 8.7% after the company reported a steep fall in quarterly net profit.
** Egypt was closed for a public holiday
Most stock markets in the Gulf ended lower on Monday, tracking global shares, as oil prices tumbled nearly 5% on concerns over the impact of rising interest rates and China's COVID-19 lockdowns on global economic growth.
Asian markets suffered their worst session in over a month as worries that Beijing could soon be back in a lockdown sent Chinese shares back to 2020 lows, and as the effects of Wall Street's 2.5% slump on Friday lingered.
The Qatari benchmark (.QSI) ended 1.6% lower, extending losses from the previous session, as all stocks but one on the index were in negative territory.
Qatar International Islamic Bank (QIIB.QA) slid 4% and was the biggest percentage decliner on the index, despite reporting a rise in first-quarter net profit.
The Abu Dhabi index (.FTFADGI) dropped 0.9%, hit by a 2.1% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank (FAB.AD).
Dubai's main share index (.DFMGI) declined 0.8%, snapping a four-day winning streak, with blue-chip developer Emaar Properties (EMAR.DU) losing 0.8%.
Crude prices, a key catalyst for the Gulf's financial markets, hit a near two-week low on demand worries.
Saudi Arabia's benchmark index (.TASI), however, bucked the trend to close 0.6% higher, led by a 2.1% jump in Islamic lender Al Rajhi Bank (1120.SE).
The Saudi stock market was mixed as investors' sentiment tilted between the strong fundamentals and international concerns, said Wael Makarem, senior market strategist at Exness.
On other hand, Saudi Kayan Petrochemical Company (2350.SE) plunged 8.7% after the company reported a steep fall in quarterly net profit.
** Egypt was closed for a public holiday
Oil dives 6% as Shanghai lockdowns stoke demand fears | Reuters
Oil dives 6% as Shanghai lockdowns stoke demand fears | Reuters
Oil slumped about 6% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.
In Shanghai, authorities have erected fences outside residential buildings. In Beijing, many people have begun stockpiling food, fearing a similar lockdown after the emergence of a few cases of COVID-19. read more
"It seems that China is the elephant in the room," said Jeffrey Halley, analyst at brokerage OANDA. "The tightening COVID-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today."
Brent futures fell $6.17, or 5.8%, to $100.48 a barrel by 11:12 a.m. EDT (1512 GMT). U.S. West Texas Intermediate (WTI) crude fell $5.91, or 5.8%, to $96.16.
Oil slumped about 6% on Monday to its lowest in two weeks on growing worries about the global energy demand outlook due to prolonged COVID-19 lockdowns in Shanghai and potential increases in U.S. interest rates.
In Shanghai, authorities have erected fences outside residential buildings. In Beijing, many people have begun stockpiling food, fearing a similar lockdown after the emergence of a few cases of COVID-19. read more
"It seems that China is the elephant in the room," said Jeffrey Halley, analyst at brokerage OANDA. "The tightening COVID-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today."
Brent futures fell $6.17, or 5.8%, to $100.48 a barrel by 11:12 a.m. EDT (1512 GMT). U.S. West Texas Intermediate (WTI) crude fell $5.91, or 5.8%, to $96.16.
Oil slides as Shanghai lockdowns stoke demand fears | Reuters
Oil slides as Shanghai lockdowns stoke demand fears | Reuters
Oil slumped nearly 5% to its lowest in almost two weeks on Monday, extending last week's decline as concern grew that prolonged COVID-19 lockdowns in Shanghai and potential increases to U.S. interest rates would hurt global growth and oil demand.
In Shanghai, authorities have erected fences outside residential buildings, sparking fresh public outcry. In Beijing many have begun stockpiling food, fearing a similar lockdown after the emergence of a few cases. read more
"It seems that China is the elephant in the room," said Jeffrey Halley, analyst at brokerage OANDA. "The tightening COVID-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today."
Brent crude was down $5.19, or 4.9%, at $101.46 a barrel by 1145 GMT and touched $101.20 earlier in the session, its lowest since April 12. U.S. West Texas Intermediate (WTI) crude fell $4.61, or 4.5%, to $97.46.
Oil slumped nearly 5% to its lowest in almost two weeks on Monday, extending last week's decline as concern grew that prolonged COVID-19 lockdowns in Shanghai and potential increases to U.S. interest rates would hurt global growth and oil demand.
In Shanghai, authorities have erected fences outside residential buildings, sparking fresh public outcry. In Beijing many have begun stockpiling food, fearing a similar lockdown after the emergence of a few cases. read more
"It seems that China is the elephant in the room," said Jeffrey Halley, analyst at brokerage OANDA. "The tightening COVID-zero restrictions in Shanghai, and fears Omicron has spread in Beijing, torpedoed sentiment today."
Brent crude was down $5.19, or 4.9%, at $101.46 a barrel by 1145 GMT and touched $101.20 earlier in the session, its lowest since April 12. U.S. West Texas Intermediate (WTI) crude fell $4.61, or 4.5%, to $97.46.
Gross #UAE banks’ assets rise to $905bln
Gross UAE banks’ assets rise to $905bln
Gross assets of banks in the UAE, including bankers’ acceptances, increased by 0.8 per cent to Dh3.322 trillion at the end of December 2021 from Dh3.295 trillion at the end of November 2021, the Central Bank of the UAE (CBUAE), said.
Gross credit increased by 0.3 per cent to Dh1.794 trillion from Dh1.788.3 trillion during the same period due to 0.1 per cent and 2.6 per cent increases in domestic credit and foreign credit, respectively.
The growth in domestic credit was mainly due to increases by 0.7 per cent, 1.7 per cent and 7 per cent in credit to the government sector, public sector (government related entities) and non-banking financial institutions, respectively. Credit to the private sector decreased by 0.5 per cent, CBUAE data shows.
Total bank deposits increased by 1.5 per cent, rising from Dh1.966 trillion at the end of November 2021 to Dh1.996 trillion at the end of December 2021. The rise in total bank deposits was due to increases in both resident deposits and non-resident deposits by 1.6 per cent and 0.6 per cent, respectively. Resident deposits rose due to 8.4 per cent, 2.4 per cent and 5.2 per cent increases in public sector deposits, private sector deposits and non-banking financial institutions deposits, respectively while government sector deposits dropped by 6.6 per cent.
Gross assets of banks in the UAE, including bankers’ acceptances, increased by 0.8 per cent to Dh3.322 trillion at the end of December 2021 from Dh3.295 trillion at the end of November 2021, the Central Bank of the UAE (CBUAE), said.
Gross credit increased by 0.3 per cent to Dh1.794 trillion from Dh1.788.3 trillion during the same period due to 0.1 per cent and 2.6 per cent increases in domestic credit and foreign credit, respectively.
The growth in domestic credit was mainly due to increases by 0.7 per cent, 1.7 per cent and 7 per cent in credit to the government sector, public sector (government related entities) and non-banking financial institutions, respectively. Credit to the private sector decreased by 0.5 per cent, CBUAE data shows.
Total bank deposits increased by 1.5 per cent, rising from Dh1.966 trillion at the end of November 2021 to Dh1.996 trillion at the end of December 2021. The rise in total bank deposits was due to increases in both resident deposits and non-resident deposits by 1.6 per cent and 0.6 per cent, respectively. Resident deposits rose due to 8.4 per cent, 2.4 per cent and 5.2 per cent increases in public sector deposits, private sector deposits and non-banking financial institutions deposits, respectively while government sector deposits dropped by 6.6 per cent.
DEWA CEO Has No Plan to Sell More Stock, Eyes Empower IPO - Bloomberg video
DEWA CEO Has No Plan to Sell More Stock, Eyes Empower IPO - Bloomberg
The head of Dubai’s water and power company said the utility has no plans to sell more stock following a $6.1 billion initial public offering this month and aims to list its district cooling provider by the end of the year.
Dubai Electricity & Water Authority sold 18% of its shares in the world’s second-biggest IPO so far this year, receiving more than $85 billion of orders. The government-owned utility nearly tripled the amount of stock for sale due to high demand spurred by the company’s potential for expansion.
“As Dubai expands, DEWA foresees continuous growth in all our main lines of business,” Chief Executive Officer Saeed Mohammed Al Tayer said in a Bloomberg Television interview on Monday.
Profit will rise at least 1.4% to 7.4 billion dirhams ($2.01 billion) next year, he said in a separate interview.
Dubai Electricity & Water Authority sold 18% of its shares in the world’s second-biggest IPO so far this year, receiving more than $85 billion of orders. The government-owned utility nearly tripled the amount of stock for sale due to high demand spurred by the company’s potential for expansion.
“As Dubai expands, DEWA foresees continuous growth in all our main lines of business,” Chief Executive Officer Saeed Mohammed Al Tayer said in a Bloomberg Television interview on Monday.
Profit will rise at least 1.4% to 7.4 billion dirhams ($2.01 billion) next year, he said in a separate interview.
#AbuDhabi licences Kraken to operate crypto exchange | Reuters
Abu Dhabi licences Kraken to operate crypto exchange | Reuters
Abu Dhabi Global Market (ADGM) said on Monday it has licenced the Kraken group to operate a regulated virtual asset exchange platform in the financial free zone.
Kraken is the first global virtual assets exchange group in the United Arab Emirates to receive a full financial licence from the ADGM, it said.
Kraken MENA (Middle East and North Africa) aims to provide access to virtual assets through regulated funding, trading, and custodial services in dirhams, UAE's currency.
ADGM introduced a virtual asset regulatory framework in 2018 and has since established itself as a leading global hub and business platform for virtual asset activities for local, regional and international firms.
Abu Dhabi Global Market (ADGM) said on Monday it has licenced the Kraken group to operate a regulated virtual asset exchange platform in the financial free zone.
Kraken is the first global virtual assets exchange group in the United Arab Emirates to receive a full financial licence from the ADGM, it said.
Kraken MENA (Middle East and North Africa) aims to provide access to virtual assets through regulated funding, trading, and custodial services in dirhams, UAE's currency.
ADGM introduced a virtual asset regulatory framework in 2018 and has since established itself as a leading global hub and business platform for virtual asset activities for local, regional and international firms.
Oil slides to 2-week lows as Shanghai lockdowns stoke demand worries | Reuters
Oil slides to 2-week lows as Shanghai lockdowns stoke demand worries | Reuters
Oil prices slumped to about two-week lows on Monday, extending losses from last week, as concerns grew that prolonged COVID-19 lockdowns in Shanghai and potential U.S. rate hikes would hurt global economic growth and demand for fuel.
Brent crude futures were down $3.93, or 3.7%, at $102.72 a barrel by 0644 GMT. They touched $102.47 earlier in the session, the lowest since April 12.
U.S. West Texas Intermediate (WTI) crude futures fell $3.80, or 3.7%, to $98.27 a barrel, having skidded earlier to $98.05, also the lowest since April 12.
The benchmarks lost nearly 5% last week on demand concerns.
"Oil is rerating lower due to the China consumption hit while the Federal Reserve is raising interest rates to slow down the US economy," SPI Asset Management Managing Director Stephen Innes said in a note.
Oil prices slumped to about two-week lows on Monday, extending losses from last week, as concerns grew that prolonged COVID-19 lockdowns in Shanghai and potential U.S. rate hikes would hurt global economic growth and demand for fuel.
Brent crude futures were down $3.93, or 3.7%, at $102.72 a barrel by 0644 GMT. They touched $102.47 earlier in the session, the lowest since April 12.
U.S. West Texas Intermediate (WTI) crude futures fell $3.80, or 3.7%, to $98.27 a barrel, having skidded earlier to $98.05, also the lowest since April 12.
The benchmarks lost nearly 5% last week on demand concerns.
"Oil is rerating lower due to the China consumption hit while the Federal Reserve is raising interest rates to slow down the US economy," SPI Asset Management Managing Director Stephen Innes said in a note.
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