There has been a fall in oil prices due to ongoing concerns about a global supply glut, combined with a strengthening dollar and weaker stock markets in China.
Brent crude for June delivery LCOc1 declined 23 cents to $40.10 a barrel, while the US crude CLc1 slipped 33 cents to $38.01 a barrel, Reuters reported.
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CMC Markets chief market strategist Michael McCarthy told the news agency that oil prices fell following oversupply concerns ahead of a meeting of major oil producers in April 2016 in Doha regarding an output freeze proposal.
The dollar index .DXY increased, making it expensive for other currency holders to buy dollar-denominated commodities.
China’s manufacturing data highlighted an unexpected expansion in March 2016.
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During the month, the country’s official purchasing managers’ index (PMI) increased to 50.2 from 49 in February, representing an expansion in output.
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By GlobalDataThe official services PMI edged up to 53.8 in March from 52.7 in February.
Declines in Asian stock markets are putting further pressure on oil prices.
Data released by the US Energy Information Administration highlighted a fall in oil output for a fourth straight month in January 2016 to 9.179 million barrels per day.
