Oil prices inch lower as dollar firms, China Covid worries dent demand

Oil prices slid on Tuesday, extending losses of nearly two per cent in the previous session, as a stronger US dollar and a flare-up in Covid-19 cases in China raised concerns of slowing global demand. Brent crude futures fell 27 cents, or 0.3pc, to $95.92 a barrel by 0342 GMT, after falling $1.73 in the previous session. US West Texas Intermediate crude was at $90.73 a barrel, down 40 cents, or 0.4pc, after losing $1.51 in the previous session. The dollar gained on Tuesday, with worries about rising interest rates and geopolitical tensions unsettling investors. A strong greenback reduces demand for oil by making it more expensive for buyers using other currencies. Rate increases to date were starting to slow the economy and the full brunt of tighter policy would not be felt for months to come, Fed Vice Chair Lael Brainard said on Monday.