Oil prices fell on Tuesday as the rise of the dollar and weak oil data from China shifted market direction after five days of gains.
Brent crude futures dropped by 41 cents, or 0.48 percent, to $85.77 per barrel by 12:50 GMT. Meanwhile, West Texas Intermediate crude fell by 40 cents, or 0.5 percent, to $80.06 per barrel.
Prices declined with the strengthening dollar ahead of Federal Reserve Chairman Jerome Powell's testimony before Congress at 15:00 GMT today. The focus will be on whether Powell maintains confidence that the Fed is on the right path to steadily drive inflation down towards the target level of two percent.
Typically, a rising dollar reduces demand for oil priced in the U.S. currency from buyers holding other currencies.
Prices faced additional pressure due to a decrease in Chinese exports and imports in January and February, including crude oil imports. This decline occurred despite the lifting of pandemic-related restrictions in China, indicating weak external demand.
