Oil prices reverse momentum after five-day rally

Oil prices fell as a stronger dollar and weak oil data from top oil importer China reversed momentum after a five-day rally.

Brent oil crude futures were down 41 cents, or 0.49%, at $85.78 a barrel by 1250 GMT. The price of WTI oil fell by 40 cents, or 0.55%, and amounted to 80.07 USD.

Prices eased as the dollar rose ahead of Fed Chairman Jeremy Powell’s testimony to Congress at 1500 GMT on Tuesday. The focus will be whether he remains confident that the Fed is on the right track to keep inflation steadily below its 2% target.

Further pressure came from a decline in China’s exports and imports in January and February, including crude oil imports. Despite easing COVID-19 regulations, the decrease still occurred, indicating a lack of overseas demand.

U.S. crude inventories may register their first decline in 10 weeks. A Reuters poll showed this week ahead of official data.

U.S. natural gas is up 2%

U.S. natural gas futures saw a rise of approximately 2.5%, recovering from their 15% drop the previous session due to forecasts of colder weather over the next two weeks and record gas flows at the Freeport LNG export facility.

That price increase came despite increased gas production this month and a forecast of lower-than-expected demand over the next two weeks, as most of the cold snap doesn’t arrive until mid-March.

The previous month fell to a 28-month low below $2/mmBtu on February 22 on warmer forecasts before jumping 9.5% to settle at a five-week high of $3 on March 3 on cooler forecasts before falling—16,5% on March 6 with the less cold weather forecast.