Oil slides to 3-week low on China's virus curbs, strong dollar | Reuters

Oil slides to 3-week low on China's virus curbs, strong dollar | Reuters

Oil prices fell over 2% to a three-week low on Monday, extending last week's steep losses on the back of a firmer U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.

A United Nations panel's dire warning on climate change added to the gloomy mood after fires in Greece razed homes and forests and parts of Europe suffered deadly floods last month. read more

Brent futures fell $1.66, or 2.4%, to settle at $69.04 a barrel, while U.S. West Texas Intermediate (WTI) crude lost $1.80, or 2.6%, to settle at $66.48.

Those were the lowest closes for both benchmarks since July 19. In intraday trade, WTI fell to its lowest level since May.

"Crude prices are declining as a slowdown in Asia disrupts the demand outlook," said Edward Moya, senior market analyst at OANDA, noting "a stronger dollar theme is (also) starting to emerge given the recovery story in the United States and that might be a short-term drag for crude prices."