Oil is falling due to the rise of the dollar and weak Chinese data

Oil prices fell on Tuesday after a stronger dollar and weak oil data in China turned the market around after five days of gains.

Brent crude futures fell 41 cents, or 0.48 percent, to $85.77 a barrel by 1250 GMT.

US West Texas Intermediate crude fell 40 cents, or 0.5 percent, to $80.06 a barrel.

Prices fell as the dollar rose ahead of Federal Reserve Chairman Jerome Powell’s testimony to Congress at 1500 GMT on Tuesday.

The focus will be on how confident Powell remains that the Fed is on the right path to push inflation back steadily towards its 2 percent target.

A rise in the dollar usually reduces demand for oil denominated in the US currency from buyers holding other currencies.

Prices were further pressured by lower Chinese exports and imports in January and February, including crude oil imports. The decline came despite the lifting of pandemic-related restrictions in China, which indicates weak external demand.