Oil prices extended their decline for a second consecutive session on Tuesday, pressured by technical corrections following last week’s rally and a firmer U.S. dollar. Concerns over ample supply and weakening economic data also weighed on sentiment.
By 1:55 pm AEDT (2:55 am GMT), Brent crude futures were down $0.10 or 0.1% to US$76.20 a barrel, while U.S. West Texas Intermediate (WTI) crude eased $0.15 or 0.2%, to $73.41 a barrel.
Both benchmarks had risen for five consecutive sessions last week, hitting their highest levels since October on Friday, driven partly by expectations of fiscal stimulus from China to bolster its slowing economy.
Meanwhile, the U.S. dollar remained near a two-year high reached last week, reflecting market uncertainties over incoming tariffs from the Trump administration. A stronger dollar typically makes oil more expensive for buyers using other currencies, limiting demand.
Supply concerns also tempered optimism in the market. Rising output from non-OPEC countries, coupled with weaker demand from China, the world’s largest oil importer, is expected to keep global oil markets well supplied into 2025.