Oil falls over 2% on demand fears and strong dollar

Oil fell by more than 2% on Monday, pressured by expectations of weaker global demand and by U.S. dollar strength ahead of possible large increases to interest rates, though supply worries limited the decline.

Central banks around the world are certain to increase borrowing costs to tame high inflation this week and there is some risk of a blowout 1 percentage point rise by the U.S. Federal Reserve. [MKTS/GLOB]