<p>Oil prices dropped 2% on Monday, extending last week's steep losses on the back of a rising US dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand.</p>.<p>Brent crude futures slid $1.41, or 2%, to $69.29 a barrel by 0125 GMT, after having slumped 6% last week, their biggest weekly loss in four months.</p>.<p>US West Texas Intermediate (WTI) crude futures fell $1.32, or 1.9%, to $66.96 a barrel, after having slumped nearly 7% last week in their steepest weekly decline in nine months.</p>.<p>"Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate," RBC analyst Gordon Ramsay said in a note.</p>.<p>ANZ analysts pointed to new restrictions in China, the world's second-largest oil consumer, as a major factor clouding the outlook for demand growth.</p>.<p>The curbs include flight cancellations, warnings by 46 cities against travel, and limits on public transport and taxi services in 144 of the worst hit areas.</p>.<p>On Monday, China reported 125 new Covid-19 cases, up from 96 a day earlier.</p>.<p>"While the number of cases (in China) is low, it comes just as the summer travel season peaks," ANZ commodity analysts said in a note. "This has overshadowed signs of strong demand elsewhere."</p>.<p>In Malaysia and Thailand, infections continue to hit daily records of more than 20,000.</p>.<p>Oil also fell as the US dollar rallied to a four-month high against the euro after Friday's stronger-than-expected US jobs report spurred bets that the Federal Reserve may move more quickly to tighten US monetary policy.</p>.<p>A stronger US dollar makes oil more expensive for holders of other currencies.</p>.<p>Trading was quiet with holidays in Japan and Singapore. </p>
<p>Oil prices dropped 2% on Monday, extending last week's steep losses on the back of a rising US dollar and concerns that new pandemic curbs in Asia, especially China, may set back the global recovery in fuel demand.</p>.<p>Brent crude futures slid $1.41, or 2%, to $69.29 a barrel by 0125 GMT, after having slumped 6% last week, their biggest weekly loss in four months.</p>.<p>US West Texas Intermediate (WTI) crude futures fell $1.32, or 1.9%, to $66.96 a barrel, after having slumped nearly 7% last week in their steepest weekly decline in nine months.</p>.<p>"Concerns about potential global oil demand erosion have resurfaced with the acceleration of the Delta variant infection rate," RBC analyst Gordon Ramsay said in a note.</p>.<p>ANZ analysts pointed to new restrictions in China, the world's second-largest oil consumer, as a major factor clouding the outlook for demand growth.</p>.<p>The curbs include flight cancellations, warnings by 46 cities against travel, and limits on public transport and taxi services in 144 of the worst hit areas.</p>.<p>On Monday, China reported 125 new Covid-19 cases, up from 96 a day earlier.</p>.<p>"While the number of cases (in China) is low, it comes just as the summer travel season peaks," ANZ commodity analysts said in a note. "This has overshadowed signs of strong demand elsewhere."</p>.<p>In Malaysia and Thailand, infections continue to hit daily records of more than 20,000.</p>.<p>Oil also fell as the US dollar rallied to a four-month high against the euro after Friday's stronger-than-expected US jobs report spurred bets that the Federal Reserve may move more quickly to tighten US monetary policy.</p>.<p>A stronger US dollar makes oil more expensive for holders of other currencies.</p>.<p>Trading was quiet with holidays in Japan and Singapore. </p>