Brent, WTI oil prices ease on Chinese economic concerns

OPEC, IEA expected to release reports this week
Brent, WTI oil prices ease on Chinese economic concerns
Oil markets

Oil prices are up almost a third over the last three months. But they eased in early Asian trading on Monday as economic concerns in China put downward pressures on fuel demand outlooks.

Brent Crude maintained a level above $90 per barrel, supported by tightening supplies after Saudi and Russia extended supply cuts.

Brent fell 49 cents, or 0.5 percent, to $90.16 while U.S. West Texas Intermediate crude was at $86.77 a barrel, down 74 cents, or 0.9 percent.

Read: Kuwait is outlaying nearly $6 bn to boost oil output to 3.5 mn bpd

Stronger USD

The move was exacerbated by a stronger USD.

Strength in the US dollar also stemmed further gains in crude, The greenback increased for eight straight weeks to a near six-month high. This made crude more expensive for international buyers.

Recent signs of resilience in the U.S. economy pushed up concerns that the Federal Reserve will have enough headroom to keep interest rates higher for longer.

U.S. fuel demand is expected to slow from here on till the holiday season, as the travel-heavy summer season ends.

The International Energy Agency and the Organization of the Petroleum Exporting Countries (OPEC) are set to publish their monthly reports this week.

Markets turned cautious before key U.S. inflation data due later this week, which is largely expected to factor into interest rates. A Federal Reserve meeting is also scheduled later in September.

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