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Oil prices fell on Tuesday, extending losses of about two percent in the previous session, as a stronger dollar and an increase in coronavirus infections in China led to fears of slowing global demand.
By 0342 GMT, Brent crude futures fell 27 cents, or 0.3 percent, to $ 95.92 a barrel, after falling $1.73 in the previous session.
US West Texas Intermediate crude price reached $ 90.73 a barrel, declining by 40 cents, or 0.4 percent, after falling by $ 1.51 in the previous session.
The dollar rose on Tuesday as concerns about rising interest rates and geopolitical tensions rattle investors.
A strong dollar reduces demand for oil because it makes it more expensive for buyers who use other currencies.
Federal Reserve Vice Chair Liel Brainard said on Monday that interest rate increases so far have begun to slow the economy, but the full burden of monetary tightening will not be clear for months.
COVID-19 cases in China, the world’s second-largest oil consumer, rose to their highest levels since August.
To limit losses, the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, a bloc known as OPEC+, decided last week to cut the production target by two million barrels per day, which increased fears of reduced oil supplies.
European Union sanctions on Russian crude and oil products will come into effect in December and February, respectively, while the bloc last week gave its final approval to a new set of sanctions against Russia, including a price cap on Russian oil exports.
