According to Reuters, oil prices started to decline as investors anticipated that further interest rate increases in the United States, the world’s largest oil consumer, would stifle economic growth and reduce fuel demand.
March Brent futures were down 33 cents to $79.32 per barrel, or 0.4%. The price of American West Texas Intermediate crude fell by 29 cents, or 0.4%, to $74.34 per barrel.
After China, the world’s largest importer of oil and second-largest consumer, opened its borders over the weekend for the first time in three years, both benchmarks increased 1%.
Separately, according to a preliminary Reuters poll released, U.S. Crude oil stockpiles likely decreased by 2.4 million barrels, and distillate inventories were also expected to decrease slightly.