Oil prices fell to their lowest level in two weeks on Monday, extending their losses in the past week, at a time when European shares fell more than 1%.

The decline in oil prices came with growing concern that the extension of the closure measures to combat “Covid-19” in Shanghai and possible increases in US interest rates would harm global economic growth and oil demand.

In Shanghai, the authorities erected fences outside residential buildings, sparking new public anger.

In Beijing, many began stockpiling foodstuffs, fearing a similar closure after the emergence of a few infections.

By 09:13 GMT, Brent crude futures fell $4.63, or 4.3%, to $102.02 a barrel, and touched $101.94 earlier in the session, the lowest since April 12.

West Texas Intermediate crude futures fell $4.11, or 4%, to $97.96 a barrel.

Oil has also weakened, with US interest rates likely to be raised in a way that boosts the dollar.

A strong dollar makes goods priced in it more expensive for holders of other currencies.

Both benchmarks lost nearly 5% last week due to concerns about demand, and Brent crude fell sharply after hitting $139 last month, its highest level since 2008.

Oil gained support from tight supply, and the Russian invasion of Ukraine has already cut supplies due to Western sanctions and customers have avoided buying Russian oil, but the market may see more tight supplies with the European Union possibly imposing a ban on Russian crude.

And the newspaper "The Times", today, Monday, quoting the Executive Vice President of the European Commission, Valdis Dombrovskis, that the bloc is preparing "smart sanctions" targeting Russian oil imports.

European shares fall to the lowest level in a month

European shares fell more than 1% on Monday, after concerns about an economic slowdown in China and rapid increases in US interest rates outweighed relief from French President Emmanuel Macron's election victory.

By 07:05 GMT, the European Stoxx 600 index fell 1.9% to its lowest level since mid-March.

France's CAC 40 fell 2.0% and the German DAX fell 1.9%.

The euro got a brief boost after Sunday's election results showed the centrist and pro-EU Macron winning, reassuring markets about France's commitment to Europe even if his economic program now rests on parliamentary elections in June.

French stocks have outperformed the broader Stoxx 600 index in the past two weeks on hopes of Macron's re-election after his relatively modest lead in opinion polls over rival Marine Le Pen, who favors nationalizing key industries and lowering taxes, kept investors on edge.

Asian stocks had their worst session in a month and a half, on Monday, as fears grew that Beijing was about to join Shanghai in closing measures.