Oil hits 1-week low as EU eases Russian sanctions, US demand concerns rise

Oil fell in Asia on Monday morning, led by the easing of European Union (EU) sanctions on Russian oil and growing concerns about demand in the United States ahead of a possible rate hike later this week.

Price movement: West Texas Intermediate (WTI) futures fell 0.8% and traded below $94/barrel to hit a one-week low . Brent futures also fell 0.83% to $97.56/barrel.

Also read: US Dollar cuts losses against major peers as that potential Fed rate of 75 bps Hike to weave

Supply-side developments: To limit risks to global energy security, EU member states have agreed to adjust sanctions under which Russian state-owned companies Rosneft RNFTF Gazprom OGZPY is shipping oil to third countries, Reuters reported.

Russian Central Bank Governor Elvira Nabiullina said Friday that the country will not supply oil to countries that choose to impose price caps.

Libya's National Oil Corporation aims to reduce oil production to 1.2 million barrels per day in two weeks.

Expert Opinion: Kazuhiko Saito, Chief Analyst at Fujitomi Securities Co Ltd., said the market tone is likely to remain bearish amid fears that rate hikes will drastically increase. interest would reduce global fuel demand and that the resumption of some Libyan crude oil production would ease the global supply squeeze, CNBC reported.

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