Oil is struggling. The prices of barrels of Brent and WTI lost 2%, to 110 and 107 dollars. At issue are concerns about the global economy “following weaker Chinese trade data released overnight,” said Victoria Scholar, an analyst at Interactive Investor. China’s exports experienced an unprecedented slowdown in April since 2020, against a backdrop of containment in Shanghai which is heavily penalizing activity and the tightening of health restrictions in Beijing.
Millions of Beijingers are working from home on Monday following a new round of anti-Covid measures, giving the Chinese capital of 22 million people the appearance of a ghost town. China has been facing its worst epidemic wave since the initial outbreak in early 2020 for two months. world economy in terms of growth and demand for oil in the coming months,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.
However, crude starts the week with news that could support prices, “as the leaders of the G7 countries have committed to ban Russian oil on Sunday”, recalls the analyst.
This weaning will be done “in an appropriate and reasoned manner”, wrote the heads of state and government of the G7 countries in their press release, which does not however specify what commitments exactly each of them has made.
“As the ban on Russian oil has already been largely factored into prices, the positive impact will certainly remain limited,” said Ms. Ozkardeskaya.
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