Brent, WTI slide by about 3bbl
Recession fears, China COVID curbs weigh on oil analysts
Dollar strengthens, trading at near parity with euro
IEA says Russia oil price cap should include refined products

LONDON, July 12 Reuters Oil prices fell on Tuesday on a strong dollar, and expectations of weakening demand due to fresh COVID19 curbs in top world crude importer China and fears of a global economic slowdown.

Brent crude futures fell 2.32, or 2.2, to 104.78 a barrel by 0953 GMT, while U.S. West Texas Intermediate crude was at 101.46 a barrel, down 2.63, or 2.5. Both contracts fell by about 3 earlier.

The euro sank on Tuesday, trading at near parity with the dollar, and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors.

As oil in priced in dollars, a stronger greenback usually weighs on oil prices because it makes the commodity more expensive for holders of other currencies.

In the West, the combination of high energy prices and rising interest rates is fuelling concerns about a recession that would have a serious impact on oil demand, Commerzbank said.

Renewed COVID19 mobility curbs in China were also weighing on prices, the bank said.

Multiple Chinese cities are adopting fresh COVID19 curbs, from business halts to lockdowns, to rein in new infections as the highly infectious BA.5.2.1 subvariant appears in the country. 

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