Oil prices edged lower on Monday amid demand concerns and ahead of interest rate decisions from the U.S. Federal Reserve and European Central Bank (ECB) later this week.
Brent crude futures fell 0.27% to $80.85 per barrel while WTI crude declined 0.23% to $76.89 per barrel. Last week, both benchmarks rose for a fourth straight week on supply worries from OPEC+ cuts.
The upward trend in oil prices is being offset by anticipation of the Fed's two-day meeting starting Tuesday, where the central bank is expected to hike rates by 25 basis points. Traders are watching for clues on the pace of future hikes.
Tightening monetary policies dampen economic activity and oil demand. The strengthening dollar, which makes oil more expensive for holders of other currencies, is also weighing on prices.
The ECB is also expected to hike rates by 25 basis points on Thursday, though it has signaled rate hikes may soon end. Markets are also awaiting potential stimulus measures from China to support its economy and boost oil demand.
On the supply side, UAE's energy minister said OPEC+ moves to support prices are sufficient for now. Meanwhile, Russian crude supplies to China surged to a record high in June as Chinese refiners continued purchases despite narrowing discounts.
