NEW YORK (CNBC) - Oil prices were stable on Monday, hovering close to $100 a barrel as support from a weaker dollar and recovering Chinese crude imports met renewed demand concerns linked to China’s stringent Covid containment approach.
Brent crude futures fell 7 cents, or 0.05% to $98.52 a barrel. U.S. West Texas Intermediate crude was at $92.46 a barrel, down 15 cents, or 0.2%.
Both contracts dropped by over $1/bbl earlier in the session as Chinese health officials on the weekend reiterated their commitment to a stringent Covid containment approach, dashing hopes of a rebound in oil demand from the world’s top crude importer.
Brent and WTI rose last week, climbing 2.9% and 5.4%, respectively, on speculation of a possible end to Covid-19 lockdowns despite the lack of any announced changes.
But prices pared losses in early European trading following stronger risk sentiment, news of recovering Chinese crude imports and as the U.S. dollar weakened against other currencies, UBS analyst Giovanni Staunovo said.