Oil trading continues the downward trend Tuesday morning as the EU eases back on some of its proposed sanctions against Russian fuel export and concerns about economic growth continue to strain market outlook.

Tuesday’s fall prolongs oil’s deepest price tumble since March, with both Brent and WTI showing the largest daily percentual dip Monday, reports Bloomberg News.

A barrel of European reference oil Brent trades Tuesday morning CEST for USD 104.15 against USD 107.62 Monday afternoon. US benchmark crude West Texas Intermediate sells at the same time for USD 101.37 against USD 104.49.

Oil rallied last week after the EU Commission proposed an incremental embargo on Russian oil, but approval is now delayed due to Eastern European member states requesting exemptions and allowances. Meanwhile, negotiations on the sixth sanctions package continue.

”Clearly, [EU] members are struggling to come to an agreement, which suggest that we may see a further watering down of the proposed package,” says Warren Patterson, head of commodities research at ING Group in Singapore, to Reuters.

Beyond all that, persisting Covid-19 resurgence in China is playing a role in stoking volatility, Bloomberg writes.

Recent data show China’s export growth at the weakest in nearly two years, Reuters writes, due to the country extending its tight lockdowns to halt the spread of contagion.

Oil prices dip amid concerns over Asian markets

Possibility of EU phasing out Russian crude sends oil up