Oil Prices Fall Due to Rising Dollar and Demand Concerns in China

Oil prices fell on Monday after gaining for seven consecutive weeks, supported by supply shortages caused by OPEC+ production cuts, amid concerns about the slowing economic recovery in China and the impact of a rising dollar. Brent crude futures dropped by 29 cents or 0.3% to $86.52 per barrel by 00:33 GMT, while U.S. West Texas Intermediate crude fell by 24 cents or 0.3% to $82.95 per barrel. Prices declined as the U.S. dollar index strengthened its gains on Monday after a slightly larger increase in U.S. producer prices in July raised treasury yields despite expectations that the Federal Reserve will halt interest rate hikes. Tina Teng, an analyst at CMC Markets, stated that oil price movements will remain limited this week as the slowdown in China's economic recovery and the strength of the U.S. dollar could lower prices, but OPEC+ will do whatever is necessary to maintain supply cuts and stabilize the markets. It is expected that the supply cuts implemented by both Saudi Arabia and Russia under the OPEC+ coalition will reduce oil inventories for the remainder of the year, which could lead to price increases, according to the International Energy Agency in its monthly report on Friday.