Prices for crude oil slump further

Crude oil prices fell Monday, continuing the heavy losses seen last week amid fears that the recovery in oil demand could be slowed by restrictions related to the Kovid in China. At 9:25 AM ET (1325 GMT), US crude oil futures were up 2.6% at $ 66.52 a barrel after falling nearly 7% last week, the largest weekly decline in nine Months, while Brent futures fell 2.6% to $ 68.89 a barrel after falling 6% last week, their largest weekly loss in four months. The RBOB futures on US gasoline fell 2.1% to $ 2,2091 a gallon. China reported 125 new Covid-19 cases on Monday, up from 96 the previous day, and authorities responded with a series of new lockdowns and travel restrictions, hurting prospects for demand growth in the world's second largest oil consumer. In addition, the country's trade data showed that crude oil imports remained weak last month, falling to 9.7 million barrels per day in July, compared to around 9.8 million in June 2021 and significantly lower than the roughly 12, 1 million imports last July. "High oil prices, limited import quotas, especially for private refineries, and maintenance work on the refineries have weighed on the country's demand for crude oil," said ING analysts in a press release. Pressure on the oil market was compounded by a rise in the US dollar after Friday's US labor market report increased expectations that the US Federal Reserve might tighten monetary policy faster than previously expected. A stronger US dollar makes oil more expensive for holders of other currencies. Sentiment in this sector is weakening, as shown by the latest positioning data from the CFTC. This shows that speculators reduced their net long position in the Nymex WTI contract by almost 16,500 lots last week, while the net long position in the ICE (NYSE: ICE) bond contract also decreased, albeit by just under 2,000 lots. On Monday, the UN Intergovernmental Panel on Climate Change published a report on the effects of climate change, which stated that heat waves, droughts and torrential rains are likely to become more frequent and extreme as the earth warms up. Also this week, the Organization of Petroleum Exporting Countries will publish its monthly oil market report on Thursday, the same day that the IEA publishes its monthly report.