Oil prices fell about 2 per cent on Monday, after China's stimulus plan disappointed investors seeking fuel demand growth in the world's No. 2 oil consumer and as the US dollar edged higher, reports Reuters.
Brent crude futures fell $1.48, or 2 per cent to $73.29 a barrel by 1302 GMT while U.S. West Texas Intermediate crude futures were at $68.78 a barrel, down $1.60, or 2.3 per cent.
Both benchmarks fell more than 2 per cent on Friday.
The US dollar index -- a measure of its value relative to a basket of foreign currencies -- slightly overshot the highs seen right after the US presidential election with markets still waiting for clarity about future US policy.
A stronger dollar makes greenback-denominated commodities such as oil more expensive for holders of other currencies and tends to weigh on prices.
In China, consumer prices rose at the slowest pace in four months in October while producer price deflation deepened, data showed on Saturday, even as Beijing doubled down on stimulus to support the sputtering economy.
"Chinese inflation figures were again weak, with the market fearing deflation, particularly as the yearly change in the producer price index fell further into negative territory... Chinese economic momentum remains negative," said Achilleas Georgolopoulos, market analyst at brokerage XM.
The latest support measures will not revive China's oil demand growth or crude oil imports, said Tamas Varga, analyst at oil broker PVM.
"After last week's US presidential election attention is slowly drifting back to the underlying fundamentals," Varga said.
Oil prices also eased after concerns about potential supply disruptions from storm Rafael in the US Gulf of Mexico subsided.
More than a quarter of US Gulf of Mexico oil and 16 per cent of natural gas output remained offline on Sunday, according to the offshore energy regulator.
© 2024 - All Rights with The Financial Express
