Oil prices fell on Monday on a stronger U.S. dollar, concerns about sanctions, and ahead of key economic data due later in the week from the U.S. Federal Reserve and U.S. payrolls.
The U.S. dollar is at a two-year high, with key data due on Wednesday and Friday.
Brent crude futures fell 21 cents, or 0.3%, to $76.3 a barrel by 0445 GMT after reaching their highest level since Oct. 14 on Friday.
WTI Crude fell 19 cents, or 0.3%, to $73.77 a barrel after reaching its highest level since Oct. 11 on Friday.
Oil has previously posted five sessions of gains on rising demand following colder weather in the Northern Hemisphere and hopes of more fiscal stimulus to revive China’s faltering economy.
The dollar traded near a two-year peak on Monday. A stronger dollar makes it more expensive to buy commodities denominated in U.S. dollars, strengthening the pressure oil purchasing.
Investors are also waiting for economic news from the Fed for more clues about its interest rate outlook and energy consumption.
The minutes of the Fed’s latest meeting are due on Wednesday, and the December payrolls report is due on Friday.
Sentiment has also been weighed down by supply the possible cuts from Iran and Russian oil as Western countries tighten sanctions.
The Biden administration plans to impose more sanctions on Russia and target Russian oil revenues by taking action against tankers carrying Russian crude.
With expected policy changes and tougher sanctions from Donald Trump’s administration, OPEC member Iran’s production could fall by 300,000 bpd to 3.25 million bpd in the second quarter.
The U.S. oil rig count, a gauge of future production, fell last week to 482, according to Baker Hughes’ weekly report released on Friday.
The global oil market will continue to be overshadowed by oversupply this year, as rising non-OPEC supplies will largely offset the rise in global demand, analysts say, with more U.S. production likely under Trump.
