The price of oil fell significantly, offsetting Friday's increase. Pressure on prices is exerted by concerns about the impact of tightening monetary policy on the global economy and the prospects for demand for petroleum products. Meanwhile, the further fall in prices is limited by the reduction in oil production by OPEC+.
The U.S. Energy Information Administration (EIA) said last week that U.S. implied gasoline demand fell from a year ago. Overall, weak US economic data and disappointing corporate earnings from the technology sector have increased fears of a recession in the US, which is the world's largest consumer of oil.
Meanwhile, the US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) fell by 0.02% to 101.81, making crude oil cheaper for non-US buyers.
As for the monetary policy outlook, the US Federal Reserve, the Bank of England and the European Central Bank are expected to raise rates at their meeting in the first week of May in an effort to cope with high inflation.
China's uneven economic recovery after COVID-19 has also clouded its oil demand prospects. Nevertheless, analysts remain optimistic about the recovery of fuel demand in China by the second half of 2023, as well as due to the fact that additional OPEC+ production cuts may tighten the markets.