FX.co ★ Oil Futures Close Sharply Lower As Demand Worries Weigh

Crude oil prices slumped on Monday, weighed down by concerns about outlook for energy demand amid the likely impact of the Ukraine war and a slowdown in Chinese economic growth amid the ongoing lockdown in Shanghai.

A sell-off in global markets amid rising worries about inflation, and the dollar's climb to a fresh two-decade high hurt sentiment. The move by Saudi Arabia to cut prices for buyers in Asia amid a drop in demand in China weighed as well on the commodity.

Crude imports by China fell 4.8% in the first four months compared with last year.

The dollar index surged to 104.19 in the Asian session. Despite paring gains subsequently, the index moved higher again on safe-haven appeal as global stocks tumbled.

West Texas Intermediate Crude oil futures for June ended down by $6.68 or about 6.1% at $103.09 a barrel.

Brent crude futures were down $6.51 or 5.8% at $105.88 a barrel a little while ago.

Data released on Saturday showed China's export growth slowed substantially in April.

Tightening lockdowns in China have raised concerns about a recession later this year in the world's second largest economy.

Shanghai has tightened lockdown measures after China's premier Xi Jinping pledged to "unswervingly" double down on the country's controversial zero-Covid policy.