Dubai, UAE–Oil prices declined more than 1% on Monday as concerns about China’s faltering economic recovery and a stronger dollar weighed against seven weeks of gains on tightening supply from OPEC+ output cuts.
Brent crude futures fell $1.07, or 1.2%, to $85.74 a barrel by 0631 GMT while U.S. West Texas Intermediate crude was at $82.12 a barrel, down 1.3%.
Prices retreated as the U.S. dollar index extended gains after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields despite expectations the Federal Reserve is at the end of hiking interest rates.
A stronger dollar pressures oil demand by making the commodity more expensive for buyers holding other currencies.
