<p>Oil prices inched lower in volatile trade on Monday, as a stronger dollar and fears of recession risks offset gains arising from Russia's plans to deepen oil supply cuts.</p>.<p>West Texas Intermediate US crude futures (WTI) traded at $76.09 a barrel, 23 cents, or 0.3 per cent lower, while Brent crude futures were down 30 cents, or 0.36 per cent, at $82.86 a barrel at 0411 GMT.</p>.<p>Both benchmarks closed more than 90 cents higher on Friday.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/russia-halts-pipeline-oil-supplies-to-poland-1194992.html" target="_blank">Russia halts pipeline oil supplies to Poland</a></strong></p>.<p>The dollar hovered near a seven-week peak on Monday after a slew of strong US economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer.</p>.<p><br />A firm dollar makes commodities priced in the US currency more expensive for holders of other currencies.</p>.<p>"Crude continues to take direction from the sentiment in the broader financial markets," said Vandana Hari, founder of oil market analysis provider Vanda Insights.</p>.<p>Fears of a hawkish Fed returned to the fore on Friday after the personal consumption expenditures (PCE) price index, shot up 0.6 per cent last month after gaining 0.2 per cent in December.</p>.<p>"If risk-aversion continues to grow, crude will likely come under renewed pressure," said Hari.</p>.<p>Adding to the downside pressure, US crude oil inventories surged to the highest level since May 2021 last week, data from the Energy Information Administration (EIA) showed.</p>.<p>"The EIA data continue to raise more questions instead of providing clarity on markets," analysts at the consultancy Energy Aspects said in a note, referring to the steep supply adjustment in the data that contributed to the build.</p>.<p>On supply side, Russia plans to cut oil exports from its western ports by up to 25 per cent in March versus February, exceeding its previously announced production cuts of 5 per cent of its output during the month.</p>.<p>Oil prices have fallen by about a sixth in the year since Feb. 24, 2022, when Russian troops first marched into Ukraine.</p>.<p>Russia halted supplies of oil to Poland via the Druzhba pipeline, the chief executive of Polish refiner PKN Orlen said on Saturday, a day after Poland delivered its first Leopard tanks to Ukraine.</p>.<p>Two weeks after the invasion, prices surged to a record high of nearly $128 a barrel over supply concerns but have since cooled over fears of a global economic slowdown.</p>.<p>Separately, investors are bracing for China's manufacturing surveys this week for a clear direction on oil demand. China is holding its annual parliamentary meeting from this weekend and will see new economic policy targets and policies.</p>.<p>"We expect the government to reiterate the priority of supporting growth and call for more policy support," Ning Zhang, senior China economist at UBS Investment Bank, said in a note. </p>
<p>Oil prices inched lower in volatile trade on Monday, as a stronger dollar and fears of recession risks offset gains arising from Russia's plans to deepen oil supply cuts.</p>.<p>West Texas Intermediate US crude futures (WTI) traded at $76.09 a barrel, 23 cents, or 0.3 per cent lower, while Brent crude futures were down 30 cents, or 0.36 per cent, at $82.86 a barrel at 0411 GMT.</p>.<p>Both benchmarks closed more than 90 cents higher on Friday.</p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/international/russia-halts-pipeline-oil-supplies-to-poland-1194992.html" target="_blank">Russia halts pipeline oil supplies to Poland</a></strong></p>.<p>The dollar hovered near a seven-week peak on Monday after a slew of strong US economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer.</p>.<p><br />A firm dollar makes commodities priced in the US currency more expensive for holders of other currencies.</p>.<p>"Crude continues to take direction from the sentiment in the broader financial markets," said Vandana Hari, founder of oil market analysis provider Vanda Insights.</p>.<p>Fears of a hawkish Fed returned to the fore on Friday after the personal consumption expenditures (PCE) price index, shot up 0.6 per cent last month after gaining 0.2 per cent in December.</p>.<p>"If risk-aversion continues to grow, crude will likely come under renewed pressure," said Hari.</p>.<p>Adding to the downside pressure, US crude oil inventories surged to the highest level since May 2021 last week, data from the Energy Information Administration (EIA) showed.</p>.<p>"The EIA data continue to raise more questions instead of providing clarity on markets," analysts at the consultancy Energy Aspects said in a note, referring to the steep supply adjustment in the data that contributed to the build.</p>.<p>On supply side, Russia plans to cut oil exports from its western ports by up to 25 per cent in March versus February, exceeding its previously announced production cuts of 5 per cent of its output during the month.</p>.<p>Oil prices have fallen by about a sixth in the year since Feb. 24, 2022, when Russian troops first marched into Ukraine.</p>.<p>Russia halted supplies of oil to Poland via the Druzhba pipeline, the chief executive of Polish refiner PKN Orlen said on Saturday, a day after Poland delivered its first Leopard tanks to Ukraine.</p>.<p>Two weeks after the invasion, prices surged to a record high of nearly $128 a barrel over supply concerns but have since cooled over fears of a global economic slowdown.</p>.<p>Separately, investors are bracing for China's manufacturing surveys this week for a clear direction on oil demand. China is holding its annual parliamentary meeting from this weekend and will see new economic policy targets and policies.</p>.<p>"We expect the government to reiterate the priority of supporting growth and call for more policy support," Ning Zhang, senior China economist at UBS Investment Bank, said in a note. </p>