Oil Prices Decline After Recent Highs Due to Economic Concerns and Supply Outlook

Weaker global economic data, a stronger US dollar, and expectations of ample supply contribute to a second day of falling oil prices.

Brent crude and West Texas Intermediate (WTI) oil prices fell for a second consecutive session following a five-day rally last week.
Weaker economic data from the US and Germany, including a drop in US manufacturing orders and rising German inflation, have dampened market optimism.
A stronger US dollar, which increases the cost of oil for buyers using other currencies, has further pressured oil prices.
Colder weather and potential tightening of sanctions on Iranian and Russian oil exports had previously supported prices but were outweighed by supply and demand concerns.
Analysts expect the oil market to remain well-supplied in 2025, with non-OPEC countries increasing output and Chinese demand showing signs of weakness.