Oil prices dipped on Monday in Asia as concerns about slowing economic growth in China, the world’s biggest oil importer, overcame concerns about potential supply disruptions from a European Union ban on Russian crude.

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Brent crude prices declined $1.21, or 1.1%, to $105.93 a barrel, while WTI crude futures in the United States sank 99 cents, or 1%, to $103.70 a barrel. On Monday, markets in Japan and Southeast Asia were closed for official holidays.

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Prices plummeted on Saturday as China announced data showing that industrial production in the world’s second-largest economy declined for the second month in a row, to its lowest level since February 2020, due to COVID lockdowns.

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Libya’s National Oil Corp (NOC) said on Sunday that it will temporarily begin operations at the Zueitina oil terminal in order to decrease reserves in storage tanks and avoid an “imminent environmental disaster” at the port.

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NOC announced force majeure on certain shipments at Zueitina in late April, when political protesters forced a number of oil facilities to shut down.

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Restricting the downside for oil prices is a probable dent in supply, with the European Union moving toward banning Russian oil imports by the end of the year, reported Reuters, following weekend meetings between the European Commission and EU member states.

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Russia sells over half of its 4.7 million barrels per day (BPD) of crude oil to the EU, accounting for around one-fourth of the EU’s oil imports in 2020.

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While Western nations have reduced their purchases of Russian oil since sanctions have affected transportation and insurance for the country’s exports, the impact on world supply has been mitigated by India’s purchase of lower-priced Russian cargoes, according to Reuters.

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Analysts at the Royal Bank of Canada predict that India’s oil imports from Russia have increased from less than 100,000 BPD in 2021 to 800,000 BPD in April and that India would continue to increase imports as long as Washington does not impose secondary sanctions.