Oil prices fell after a stronger dollar and weak oil data in China turned the market around, after five days of gains.
Brent crude futures fell 41 cents, or 0.48 percent, to $85.77. US West Texas Intermediate crude fell 40 cents, or 0.5 percent, to $80.06.
Prices fell as the dollar rose ahead of Federal Reserve Chairman Jerome Powell’s testimony before Congress. The focus will be on how confident Powell remains that the US central bank is on the right path to push inflation back steadily towards its 2 percent target.
Usually, the rise of the dollar reduces the demand for oil denominated in the US currency from buyers holding other currencies. Prices were further pressured by lower Chinese exports and imports in January and February, including crude oil imports. The decline came despite the lifting of pandemic-related restrictions in China, indicating weaker external demand.
