Oil Slips On Fears Over Slowing China Demand

China’s economy slowed in March Libyan NOC declares Zueitina force majeure, warns of closure Russian oil production down 7.5% in April – IFAX cites source

TOKYO / LONDON, April 18 (Reuters) – Oil fell on Monday as worries about a slowdown in demand in China offset support from worries about tight global supply and the escalating crisis in Ukraine. China’s economy slowed in March as consumption, real estate and exports were hit, shifting away from faster-than-expected first-quarter growth figures and worsening a outlook already weakened by COVID-19 restrictions and in Ukraine. read more Brent crude oil fell 19 cents, or 0.2%, to $ 111.51 a barrel at 08:25 GMT, falling from a March 30 high of $ 113.80 earlier in the session. US West Texas Intermediate fell 19 cents, or 0.2%, to $ 106.76. Sign up now for FREE unlimited access to Reuters.com Register “Some Asian investors closed their profits as they worried about slowing demand in China,” said Satoru Yoshida, a commodity analyst at Rakuten Securities. Monday’s data also showed China refined 2% less oil in March than a year earlier, with trading falling to its lowest level since October as rising crude prices squeezed margins and severe lockdowns hit the demand. read more Oil jumped to its highest level since March 2008, with Brent just above $ 134, as Russia’s invasion of Ukraine heightened supply concerns over sanctions on Russia and buyers avoiding Russian oil. Adding to the supply side pressure, Libya’s National Oil Corp on Monday declared force in the oil port of Zueitina and warned that “a painful wave of closure” had begun to hit its facilities. Libya had stopped production from its El Feel oil field on Sunday. read more Russian production fell 7.5 percent in the first half of April from March, Interfax reported on Friday, and EU governments said last week that the bloc’s executive was working on proposals to ban Russian crude. These comments were made before the escalation of tensions in the crisis in Ukraine. Ukrainian authorities say rockets hit Lviv early Monday and explosions rocked other cities as Russian forces continued their bombardment after claiming almost complete control of the port city of Mariupol. read more “The ongoing war between Russia and Ukraine without signs of a ceasefire has fueled supply fears, especially as demand is expected to rise as the northern hemisphere approaches,” said Chiyoki Chen, chief analyst at Sunward Trading. Sign up now for FREE unlimited access to Reuters.com Register Report by Yuka Obayashi and Alex Lawler. Edited by: Jacqueline Wong Our role models: The Thomson Reuters Trust Principles.