By David Ho

Investing.com – Oil was down on Tuesday morning in Asia due to demand outlook concerns as top oil importer China imposes lockdowns and economic tensions rise in Europe.

At 10:33 pm ET (10:33 GMT), the price fell to $105.02 (0.87%) and dropped to $102.22.

Fears that Russian sanctions could cause economic hardship in some European countries are reflected by financial markets.

The European Commission last week proposed that Russia be subject to a gradual embargo. The result was a rise in Brent and WTI price. To be approved, however, it needs to receive unanimous support from EU member countries this week.

The halting of Russian gas supply to Germany will likely cause a severe recession. According to projections by a senior economist, this could result in half a million job losses.

Reuters reports that German officials have prepared for any abrupt halt in Russian gas supplies by preparing an emergency package, which could include the taking of control over critical companies.

Hungary reiterated that it won’t accept any new sanctions on Russia without addressing its issues.

The global financial market has also been affected due to concerns about recession fears and interest rate rises. In April, China’s COVID-19 regulations already resulted in slower growth of the country that is second in terms of GDP.

China’s first four-monthly crude imports fell by 4.8% compared to a year ago. However, April imports increased by almost 7 percent.

Wall Street stock indices were also affected by Monday’s dollar spike. This was the second consecutive decade high. This made oil more expensive to those who trade in other currencies.