Oil slips on global economic concerns, ahead of EU vote on Russia oil ban

Oil slips on global economic concerns, ahead of EU vote on Russia oil ban

U.S. West Texas Intermediate crude was at $109.36 a barrel, down 41 cents, or 0.4%.

"The broader risk-off sentiment sparked by the recession fears, and China’s lockdowns are the major factors that pressure the oil price," CMC Markets analyst Tina Teng said.

Global financial markets are also spooked by concerns over interest rate hikes and extended COVID-19 lockdowns in China that are hurting the world's No. 2 economy.

"China’s ongoing lockdowns could continue to weigh on the near-term oil prices," Teng said. A price cut by Saudi Arabia also reflected worries over global oil demand, she said.

Saudi Arabia, world's top oil exporter, lowered crude prices for Asia and Europe for June on Sunday.

Last week, Brent and WTI rose for the second straight week on supply concerns after the European Commission proposed a phased embargo on Russian oil as part of its toughest-yet package of sanctions over the conflict in Ukraine. The proposal requires a unanimous vote among EU members.

Bulgaria's Deputy Prime Minister said late on Sunday, though, that the country will veto EU oil sanctions on Russia if it does not get a derogation from the proposed embargo.

"The talks will continue tomorrow, on Tuesday too, a meeting of the leaders may be needed