Oil prices fell on Tuesday, continuing a loss of about two percent from the previous session, as a rising dollar and an increase in COVID-19 infections in China raised concerns about a slowdown in global demand. COVID-19 cases in China, the world's second-largest oil consumer, reached their highest levels since August.
To mitigate the losses, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, a coalition known as OPEC+, decided last week to cut the targeted production by two million barrels per day, heightening fears of reduced oil supplies.
The European Union's sanctions on Russian crude and oil products will take effect in December and February respectively, while the bloc last week gave its final approval for a new set of sanctions against Russia, including a price cap on Russian oil exports.
By 0342 GMT, Brent crude futures slipped 27 cents, or 0.3 percent, to $95.92 a barrel after falling $1.73 in the previous session. West Texas Intermediate (WTI) crude was priced at $90.73 a barrel, down 40 cents, or 0.4 percent, after a decline of $1.51 in the prior session.
The dollar rose amid concerns over rising interest rates and geopolitical tensions that are unsettling investors. A strong dollar decreases oil demand as it makes oil more expensive for buyers using other currencies.
