Oil slips on demand concerns but holds near $100 a barrel as dollar weakens

LONDON (Reuters) -Oil prices edged lower on Monday on demand concerns linked to China’s stringent COVID containment policy but remained close to $100 a barrel on support from a weaker dollar and recovering Chinese crude imports.

Brent crude futures fell by 39 cents, or 0.4% to $98.18 a barrel by 1306 GMT. U.S. West Texas Intermediate crude fell by 47 cents, or 0.51%, to $92.14.

Both contracts dropped by more than $1 a barrel earlier in the session after Chinese health officials at the weekend reiterated their commitment to strict COVID containment measures, dashing hopes of a rebound in oil demand from the world’s top crude importer.

Brent and WTI rose last week, climbing 2.9% and 5.4%, respectively on speculation about a possible end to COVID-19 lockdowns despite the lack of any announced changes.