Oil prices decreased on Monday as prolonged lockdown measures in Shanghai and potential US interest rate hikes fueled demand uncertainties.
International benchmark Brent crude cost $102.22 per barrel at 0637 GMT for a 3.7% decrease after closing the previous session at $106.15 a barrel.
American benchmark West Texas Intermediate (WTI) traded at $98.23 per barrel at the same time for a 3.8% drop after the previous session closed at $102.07 a barrel.
Due to increasing COVID-19 cases, lockdown measures applied in Shanghai, the largest city in China and one of the most important financial and trade centers in Asia, interrupted logistics management and supply chains, which are the lifeblood of trade worldwide and of China's economy.
A partial closure announced on March 28 due to increasing omicron variant cases in the city had been extended indefinitely throughout the entire city.
Furthermore, expectations of an announcement of a half-point interest rate hike at the meeting of the Federal Reserve in May to get inflation down to its 2% goal also put pressure on oil prices.
A higher interest rate means a higher US dollar rate, making oil more expensive for buyers holding other currencies.
On the supply side, the oil rig count in the US increased for five consecutive weeks, according to the latest data released by oilfield services company Baker Hughes on Friday.
An indicator of short-term production in the country, the weekly number of oil rigs rose by 1 to 549 for the week ending April 22.
By Ebru Sengul Cevrioglu
Anadolu Agency
energy@aa.com.tr