2023.02.1308:53:00UTC+00Oil Prices Fall On Demand Concerns

Oil prices declined on Monday after ending sharply higher in the previous session on continued optimism about higher fuel demand from China, and on Russia's move to reduce oil output next month in retaliation for Western sanctions.

Benchmark Brent crude futures fell 1.3 percent to $85.27 barrel in European trade, while WTI crude futures were down 1.4 percent at $78.61.

Demand concerns returned to the fore ahead of the release of key U.S. inflation data due this week that could influence the Federal Reserve's rate-hike roadmap.

The dollar firmed up after Philadelphia Federal Reserve President Patrick Harker said on Friday that he sees the Fed's policy rate going up to somewhere above 5 percent and holding there for a while.

Movements in U.S. Treasury yields are flashing a big warning that an economic downturn may be on the horizon.

Meanwhile, tanker loadings of crude oil from Azerbaijan at the Mediterranean terminal of Ceyhan have resumed, helping ease supply concerns.

The operation of the Turkish oil terminal was suspended due to the earthquake that occurred on February 6.