Oil Eases On Pandemic Worries, Strong U.S. Dollar

• Oil prices eased in volatile trade on Tuesday, pressured by a rising U.S. dollar and growing worries that new coronavirus cases could slow demand; however, losses were limited by supply concerns due to sanctions on Russia for alleged war crimes. 
• The US dollar hit its highest in nearly two years on Tuesday, boosted by hawkish comments from Federal Reserve officials who pushed for a quick reduction in the central bank’s bloated balance sheet. A stronger dollar makes oil more expensive for holders of other currencies. 
• However, demand worries mounted after authorities in top oil importer China extended a lockdown in Shanghai to cover all of the financial center's 26.0Mn people. 
• Brent futures fell 89 cents, or 0.8%, to settle at $106.64 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.32, or 1.3% to settle at $101.96. 
• “Oil prices will likely stay at around US$100 a barrel for a while amid demand concerns and an expectation for no conflict in the Middle East during the Muslim fasting month of Ramadan, but they may rise again after Ramadan and as the U.S. driving season kicks off,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities.

(Source: Reuters)