Oil prices fell on Tuesday, as the market was affected by investor disappointment over the latest Chinese stimulus plan and concerns about excess supply, in addition to the rise in the dollar.
Brent crude futures fell 17 cents, or 0.2 percent, to $71.66 per barrel, and US West Texas Intermediate crude futures reached $67.84 per barrel, down 20 cents, or 0.3 percent.
Futures contracts for both crude oil fell by more than 5 percent during the previous two trading sessions.
China unveiled a 10 trillion yuan ($1.4 trillion) debt package on Friday to ease local government financing pressures, while the world’s largest oil importer faces new pressure from the re-election of Donald Trump as US president.
But analysts said it falls short of the amount of stimulus needed to boost growth.
While crude oil prices extended losses on the strength of the US dollar, concerns about demand in China also emerged, ANZ Research analysts said in a note.
“Data released over the weekend showed weak consumer inflation in October and another decline in factory gate prices,” they said.
Analysts added that the market is now looking forward to the release of monthly oil market reports from OPEC, the International Energy Agency and the Energy Information Administration. “Any further reductions in demand, especially from OPEC, may affect sentiment.”
