Oil settles lower on oversupply concerns, strong US$

Brent crude futures fell 69 cents, or 0.9%, to $73.70. U.S. West Texas Intermediate (WTI) crude futures settled down 56 cents, or 0.8%, at $70.73. The U.S. dollar stayed near one-week highs on Tuesday versus a basket of major currencies, bolstered by the producer prices data.

NEW YORK: Oil futures prices dropped toward US$73 a barrel on Tuesday after the International Energy Agency (IEA) said the Omicron coronavirus variant is set to dent global demand recovery.

U.S. data showing producer prices at 11-year highs reinforced market expectations of faster stimulus tapering by the Federal Reserve, which meets this week. This supported the dollar and weighed on oil, which typically move inversely.