Oil continues to fall: weak demand and strengthening of the US dollar

Oil continues its rapid decline, experiencing the most serious drop in two weeks. Weak demand in China, a strong US dollar and fears of oversupply are putting negative pressure on prices.

Brent futures fell almost 3% on Monday and are trading below $72 per barrel. WTI prices also fell to $67.78, losing about 0.37%.

China's recent efforts to stimulate the economy have not met investors' expectations, and inflation in the country remains low. At the same time, the US dollar index has reached new multi-month highs, which makes oil more expensive for most buyers.

The oil market has been in a relatively narrow range since the middle of last month, but now the outlook remains weak. Oil supply is expected to exceed demand next year. OPEC's monthly market report, expected later on Tuesday, may shed light on the prospects for market balance.

Experts note that significant factors are needed to change the negative trend in the oil market, such as the postponement of the return of OPEC+ oil production or the imposition of US sanctions against Iran.