By Laura Sanicola

(Reuters) – Oil prices fell at Friday’s start to Asian trade as fears about an economic slowdown that might dampen crude demand teamed with worries over the new EU sanctions against Russia. This included an embargo.

Futures dropped 37 cents or 0.3% to $110.53 per barrel at 0015 GMT. U.S. West Texas Intermediate crude oil fell 33 cents or 0.3% to $107.93 per barrel.

On Thursday, the Bank of England advised Britain that it faces a double-whammy of inflation exceeding 10% and a recession. It raised interest rates by a quarter of an percentage point to 1.1%.

Wall Street stock fell as Wall Street investors shrewdered risky investments in fear that the Fed would raise rates this year to control inflation.

Concerning supply, the Organization of the Petroleum Exporting Countries and Russia, also known as OPEC+, reached an agreement as expected for a slight monthly increase in oil production.

OPEC+ ignored calls for more output from Western nations and agreed to increase June production by 432,000 barrels per day in keeping with its plans to remove curbs imposed when the pandemic hammered demands.

EU sanctions proposals require unanimous support from all 27 member countries. They include phasing out Russian refined products imports by 2022, and banning any shipping and insurance for Russian oil transport.

The U.S. Senate approved a bill to expose OPEC+to legal action for its collusion in boosting oil prices. Congress has failed to pass the legislation in more than 20 years, however lawmakers worry about high gasoline prices and rising inflation.