Oil prices have fallen to continue the declining trend from the end of last week in the wake of a wider market sell-off and a stronger dollar.
With the latest round of falling prices, Brent crude fell to its lowest level in nearly a month.
Brent dipped by 68 cents to touch $67.91 a barrel, while US West Texas Intermediate (WTI) crude fell 72 cents to reach $64.73, according to Reuters.
The fall in prices comes after Brent registered a weekly drop of 2.75% last week, WTI fell by 1% during the same time.
CMC Markets chief market analyst Ric Spooner was quoted by the news agency as saying: “Oil is caught up in this general risk-off move, not helped at the margins by a little bit of strength in the US dollar.”
Fears of inflation struck investors as payrolls report from the US, released last week, indicated wages recorded their fastest growth in more than eight and a half years.
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Asian shares plunged to their lowest levels in more than a year amid fears of resurgent inflation-battered bonds.
Last week, Wall Street plummeted from record highs on the back of speculation that central banks globally might keep monetary policies on a tighter leash.
Furthermore, growing US output has added to the increasing pressure on oil prices, despite continuing efforts by OPEC to stabilise the market.
Under US Government data released last week, production reached levels of more than ten million barrels per day in November for the first time since 1970.
The surge in production levels is a result of the expansion of operations by shale drillers after gains in oil prices last year.