Oil prices extend losses, with Brent plumbing five-week lows

Oil prices fell in American trade on Tuesday, extending losses for the third straight session, with US crude plumbing a week low, while Brent shed five-week lows as the dollar gained ground.

Prices are also pressured by concerns about weakening Chinese demand after disconcerting data. 

Now traders await initial US crude stocks data from the American Petroleum Institute, expected to show a drop for the second straight week.

Prices

US crude fell 2.2% to $80.97 a barrel, the lowest in a week, while Brent slid 1.9% to $85.48 a barrel, the lowest since late March. 

On Monday, US crude lost 1.3%, while Brent shed 0.9% amid concerns about global demand. 

The Dollar

The dollar index rose 0.4% on Tuesday, resuming gains against a basket of major rivals.

The gains come after strong US labor and housing prices data, which hurt the odds of a July interest rate cut. 

Dollar’s gains are pressuring commodity and mineral prices and making them costlier to holders of other currencies. 

Chinese Demand

Earlier Chinese data showed weakness in China’s manufacturing and services activities, reigniting concerns about fuel demand there.

US Stocks 

Initial data from the American Petroleum Institute will be released today, expected to show a drawdown for the second week in a row.