Oil prices extended losses on Tuesday on profit taking and a stronger U.S. dollar, but overall optimism about recovering demand kept a floor under prices.
Brent crude was down 37 cents, or 0.5%, at $71.12 a barrel by 1335 GMT, after declining 0.6% on Monday. U.S. West Texas Intermediate oil was off by 27 cents, or 0.4%, at $68.96 a barrel, having dropped by 0.6% in the previous session.
“A previous price surge that was probably premature, coupled with a stronger U.S. dollar and a correction on the stock markets, are weighing on oil prices,” Commerzbank said.
As oil is priced in dollars, a stronger greenback makes crude more expensive for buyers with other currencies.
