By David Ho

Investing.com – Oil was down on Tuesday morning in Asia due to demand outlook concerns as top oil importer China imposes lockdowns and economic tensions rise in Europe.

fell 0.87% to $105.02 by 10:33 PM ET (2:33 AM GMT) while slipped 0.84% to $102.22.

Financial markets are reflecting fears that sanctions on Russian oil imports after its invasion of Ukraine could put some European countries in economic distress.

Last week, the European Commission proposed a phased embargo on Russian oil. It resulted in boosted Brent and WTI prices. However, the proposal needs a unanimous vote by EU members this week to pass.

A halt to Russian gas supplies to Germany is likely to trigger a deep recession. This could cost half a million jobs, according to projections from a senior economist on Tuesday.

Reuters reported that German officials are getting ready for any sudden halt in Russian gas supplies with an emergency package that could include taking control of critical firms.

Hungary has also restated its position that it will not accept a new round of proposed sanctions on Russia until its concerns are addressed.

Global financial markets have also been affected by concerns over interest rate hikes and recession worries. The COVID-19 in China have already led to slower export growth in the world’s second largest economy in April.

Crude imports by China in the first four months of 2022 fell 4.8% from a year ago. However, April imports were up nearly 7%.

In addition, Wall Street stock indexes fell on Monday as the dollar hit a two-decade high. It made oil more expensive for those dealing in other currencies.