Oil prices dropped more than 1% on Tuesday May 10, extending its biggest drop in more than five weeks amid rising concerns over the global demand.
Brent crude dropped to $104.63 at 02:16 GMT after slipping to as low as $103.19. While U.S. West Texas Intermediate crude fell to $101.84 a barrel after hitting an intraday low of $100.44, according to Reuters.
It's worth noting that oil prices is witnessing this major slump as world's top oil importer, China, reinforces COVID lockdowns, and after the EU softened its proposed sanctions on Russian crude exports.
Because of China's Zero COVID policy, the country had to extend the lockdowns to curb the recent spike. As a result, China’s oil export growth had slowed to single digits, the weakest in almost two years.
In Europe, the EU has proposed phased embargo on Russian oil last week. However, the proposal wasn't approved and a new version is being drafted now after pressure from Greece, Cyprus and Malta. The new proposal is likely to drop a ban on EU tankers carrying Russian oil, a EU source said.
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