Oil prices fell towards $80 a barrel today, following the further strengthening of the dollar against the euro and concerns over surprise interest rate hikes in India.
Fears of continuing global oversupply are countered by the decline in China’s fuel exports in February, and implied oil demand rose as companies prepare for an upcoming domestic demand jump, reports Reuters.
For April delivery, US crude fell 47¢ to $80.21 a barrel at 0638 GMT, marking two consecutive weeks of falls, according to Reuters.
For April delivery, London Brent crude fell 33¢ to $79.55 a barrel.
Oil managed to top $83 four times this month, but failed to hold the gains, partly attributed to the expectations of oversupply this year.
The oil market will likely face oversupply of 150,000bpd, according to a Reuters’ poll of ten oil-tracking analysts and organisations.