Oil prices, shaken by the Russia-Ukraine war, hit the lowest level in the last six months.
Oil started the week losing a premium as speculation abounds that global demand is weakening and investors weigh in on a number of details about a US-led plan to try to limit the price of Russian crude.
Brent oil traded at $91, while US crude oil fell to $85 a barrel after a fluctuating course last week.
In Turkey, on the other hand, while the rise in the dollar continued, there was an expectation of discounts on gasoline and diesel.
Despite all the interventions of the Central Bank, the dollar has risen to 18.24 TL.
As global growth slows, concerns persist that the consumption outlook is deteriorating as China continues its strategy of containing Covid-19 by curbing activity.
Late on Friday, the US Treasury released private sector compliance guidelines for the proposed cap for Russian oil, which will come into effect from December. Deputy Treasury Secretary Wally Adeyemo said Moscow had no choice but to join.
Crude oil has fallen by almost a third since June, losing all gains it has made since Russia’s invasion of Ukraine.
The comeback came as central banks, including the Fed, tightened their policies to suppress inflation. The US price cap plan, backed by the G7, aims to curtail the flow of funds used to finance the war by reducing Moscow’s revenue from oil sales.
“Potential demand weakness stands out in terms of recession fears and prolonged restraints in China,” said Sean Lim, Oil and Gas Analyst at RHB Investment Bank.
In China, the world’s largest oil importer, authorities are intensifying quarantines and restrictions as the Communist Party meeting approaches.
Iran nuclear talks were in focus after Britain, France and Germany said over the weekend that they had “serious doubts” over Tehran’s commitment to a new deal. If an agreement is reached, it could pave the way for a massive increase in the flow of Iranian crude oil to the global market.
Last week, the Organization of the Petroleum Exporting Countries and its allies, including Russia, cut supply with a warning that the group was ready to take action again if conditions changed.