By Gina Lee

Investing.com – Oil was down on Monday morning in Asia, and continuing the previous week’s losses. Long-term COVID-19 lockdowns, in Shanghai, as well as potential U.S. rate increases continue to fuel concerns.

After hitting $103.41, the lowest point since April, $103.17 dropped 2.81% by 1:18 AM ET (5:00 AM GMT). 12 minutes earlier in the session. The price of the stock fell 2.79% to $99.22 after it plummeted to $98.93. This is its lowest level since April. 12, earlier. Brent and WTI benchmarks were down nearly 5% over the past week.

SPI Asset Management’s Managing Director Stephen Innes stated in a note that oil is trending lower because of the China consumption impact, while the U.S. Federal Reserve raises interest rates to slow the US economy.

Two strong headwinds suggest that some oil bulls might give way and cause recession fears and devastation.

Fed Chairman Jerome Powell indicated that an increase of half-point in interest rates “will be on table” when it makes its May 2022 policy decision. China’s fuel demand worries remain despite Shanghai gradually easing its lockdown.

U.S. Energy firms increased oil production and rigs by 51% for the fifth consecutive week. The Russia-Kazakh Caspian Pipeline Consortium has resumed exports across the Atlantic. Three sources tell Reuters that 22 was the deadline after nearly 30 days of interruptions due to repairs at one of its main loading facilities.

Due to the Russian invasion of Ukraine in February 24, the ongoing conflict in Ukraine could put pressure on European Union (EU), which may be forced to sanction Russian oil prices and hike them later in 2022.

Hiroyuki Kukawa, Securities General Manager of Research said that oil prices would not drop below $90 per barrel because of the EU’s possible ban on Russian oil. This is despite the Ukraine crisis.

The European Commission’s executive vice president Valdis Dimbrovskis stated in The Times that the bloc was preparing smart sanctions against Russian oil imports. Russia is Europe’s biggest gas supplier. It is also the 2nd-largest global oil exporter, after Saudi Arabia.

Some investors believe that Emmanuel Macron’s win in Sunday’s French presidential election could give black liquid a boost.

The note by Innes, SPI, stated that “I would expect London oil to be bought” because of his support for the European Union’s oil embargo.