Oil prices extended losses to a second straight session Tuesday on a technical correction after last week’s rally, as expectations of ample supply and a firm dollar also weighed.
Brent crude lost 28 cents, or 0.37 percent, to $76.02 a barrel by 0148 GMT, while U.S. West Texas Intermediate (WTI) crude lost 33 cents, or 0.45 percent, to settle at $73.23.
Both benchmarks rose for five straight days last week and settled at their highest levels since October on Friday, partly due to expectations of more fiscal stimulus to revitalize China’s faltering economy .
“This week’s weakness is likely due to a technical correction as traders react to weaker economic data globally that undermines previously seen optimism,” said Priyanka Sachdeva, senior market analyst at Phillip Nova, referring to bearish economic news from the United States and Germany.
“Furthermore, dollar strength is catching up with market sentiment and appears to be cutting into current oil price gains,” Sachdeva said.
The U.S. dollar wavered but remained near the two-year high it hit last week, amid uncertainty over the scale of the incoming Trump administration’s tariffs.
A stronger dollar makes oil more expensive for holders of other currencies.
Rising demand from non-OPEC countries, coupled with weak demand from China, is expected to keep the oil market well supplied next year, which has also limited price increases.
“The rise in crude oil prices appears to be running out of steam,” ING analysts wrote in a note.
“Although there has been some tightening in the physical market, the fundamentals through 2025 are still expected to be comfortable, which should limit the upside.
