Oil resumes decline in Asia after ending ugly week with a bounce

Brent oil dropped in Asia as the dollar strengthened, giving up some of the gains posted at the end of the worst week since October.

Futures in London slipped 1% on Monday as a rising dollar reduced the appeal of commodities priced in the currency. Despite rising 2% on Friday, crude still capped a large weekly loss amid a combination of factors including a softening physical market and the unwinding of long positions. Concerns about near-term demand due to the uneven pandemic recovery also continue to linger.

Saudi Arabia, meanwhile, saw another assault on its energy facilities. While the offensive by Iran-backed Houthi rebels on an Aramco refinery on Friday had no impact on oil supplies, it’s the latest in a series of attacks on the kingdom.