Oil holds loss as stronger US dollar, slowdown concerns weigh

Oil held a loss as a stronger US dollar and concerns over an economic slowdown that would sap energy demand weighed on sentiment.

West Texas Intermediate traded below $80 a barrel after closing 1.2 per cent lower on Monday.

The dollar has climbed over the previous three sessions as investors boosted bets the Federal Reserve will again raise borrowing costs in May, though the aggressive rate-hike cycle may be nearing the end.

Oil has rallied since hitting a 15-month low last month amid a banking crisis that rippled across global markets.

While many in the market are bullish on China’s economic recovery, Citigroup said the top importer’s recovery has been slower than expected and forecast prices to fall below $80 a barrel.

Traders will get further insights on the state of the market this week as OPEC and the International Energy Agency release their monthly outlooks, while US inflation data and Federal Reserve minutes are also due.

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