Oil falls as demand concerns weigh against tight supply

div classBodysc17zpet90 cdBBJodivpBy Laura Sanicolap

pReuters – Oil prices dipped at the start of Asian trade on Friday as worries about an economic downturn that could dampen demand for crude vied with concerns over new sanctions from the European Union against Russia, including an embargo on crude oil.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pBrent futures fell 37 cents, or 0.3, to 110.53 a barrel by 0015 GMT, while U.S. West Texas Intermediate WTI crude fell 33 cents, or 0.3, to 107.93 a barrel.p

pThe Bank of England warned Thursday that Britain risks a doublewhammy of a recession and inflation above 10 as it raised interest rates to their highest since 2009, hiking by quarter of a percentage point to 1.p

pWall Street stocks tumbled, meanwhile, as investors shed risky investments, worried the Fed might hike rates more this year to tame inflation.p

pOn supply, the Organization of the Petroleum Exporting Countries, Russia and allied producers, known as OPEC, agreed as expected to another modest monthly increase in oil output. p

pIgnoring calls from Western nations to hike output more, OPEC agreed to raise June production by 432,000 barrels per day, in line with its plan to unwind curbs made when the pandemic hammered demand.p

pThe EU sanctions proposal, which needs unanimous backingfrom the 27 countries in the bloc, involves phasing out importsof Russian refined products by the end of 2022 and a ban on allshipping and insurance services for transporting Russian oil.p

pA U.S. Senate panel advanced a bill that could expose OPECto lawsuits for collusion on boosting oil prices. Congress hasfailed to pass versions of the legislation for more than twodecades, but lawmakers are worried about rising inflation andhigh gasoline prices