May 11: Oil edged lower in early Asian trade on Wednesday, sustaining the previous session’s weakness that was caused by risks to demand from an economic recession and on uncertainty about an embargo on Russian oil by the European Union.
Brent crude was down 86 cents, or 1.1%, at $101.60 a barrel by 0002 GMT. U.S. West Texas Intermediate crude fell 80 cents, or 0.8%, to $98.96 a barrel.
The European Union Commission has delayed acting on a proposal to embargo Russian oil. Hungary has dug in its heels in opposition, and other European nations voiced concerns that their economies could suffer distress if Russian oil imports were curtailed further.
“The market has become heavily reliant upon a full-out EU ban on Russian oil if crude prices are to advance appreciably off levels that existed shortly after the start of the war,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois, in a note.
Wall Street’s main indexes turned lower in volatile trading on Tuesday due to concerns over aggressive monetary policy tightening and slowing economic growth.
The dollar held near a two-decade high on Tuesday ahead of a reading on inflation that could hint at the outlook for Fed policy, making crude more expensive for buyers using other currencies.