The rising US dollar has pushed global oil prices down, although further falls have been prevented by growing Chinese crude demand and OPEC-led supply cuts.

US West Texas Intermediate (WTI) crude futures fell by 11 cents, or 0.2%, trading at $56.58 a barrel. Brent crude futures dipped 8 cents, or 0.1%, trading at $62.12 a barrel, according to Reuters.

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Traders opined that a stronger dollar had an influence on prices, jumping more than 0.9% this month against a number of other currencies.

According to the news agency, Bank of America Merrill Lynch (BoAML), in its 2018 outlook, stated: “A strong US dollar could act as a headwind to commodities.”

China is set to overtake the US as the world’s biggest crude importer.

“A strong US dollar could act as a headwind to commodities.”

Based on data from the General Administration of Customs, China’s crude oil imports increased to 37.04 million tonnes last month.

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BMI Research was quoted by the news agency as saying: “China’s crude oil imports will continue to rise over the coming years, as output declines from several of its giant onshore fields … This will inevitably see China become more reliant on crude oil imports over our forecast period, with import dependency set to increase from a record 68% in 2017 to nearly 80% by 2021.”

BoAML forecasts Brent crude oil to reach the $70 per barrel mark by mid-year.

OPEC and other producers such as Russia have been involved in a price stabilisation programme through a reduction in output, which was initially set to expire in March next year.

In a recently concluded agreement, producers opted to extend the production cut until the end of next year.

However, rising US production continues to pose challenges to the oil markets.