Its prices oil They posted heavy losses on Monday as China’s plan to stimulate the economy disappointed investors looking for increased demand for fuel in the world’s No. 2 oil consumer and as the U.S. dollar strengthened.

In particular, Brent for January delivery recorded losses of 2.82% at $71.79 a barrel and US WTI crude for December delivery fell by 3.13% at $68.19 a barrel. It is noted that both contracts recorded a drop of more than 2% last Friday.

The dollar rose as much as 0.40% as traders braced for a key US consumer inflation report this week and a series of statements from US speakers. Federal Reserve Bank (|Fed)including President Jerome Powell on Thursday.

A stronger dollar makes dollar-denominated commodities, such as oil, more expensive for holders of other currencies and tends to weigh on prices.

In Chinaconsumer prices rose at their slowest pace in four months in October, while producer price deflation worsened, data showed on Saturday, even as Beijing doubled stimulus to support the economy.

“Chinese inflation data was again weak, with the market fearing deflation, especially as the year-on-year change in the producer price index slipped further into negative territory…, momentum in the Chinese economy remains negative,” he told CNBC. the Achilleas Georgolopoulos, market analyst of XM brokerage firm.

The latest support measures will not revive China’s oil demand growth or crude imports, said Tamas Varga, an analyst at PVM.

Oil prices also eased after worries over potential supply disruptions from the Storm Rafael in the US Gulf of Mexico.

More than a quarter of the U.S. Gulf of Mexico’s oil and 16 percent of natural gas production remained offline on Sunday, according to the offshore energy regulator.

Looking ahead, there are also concerns that US oil and gas output could rise under the new Donald Trump administration, although analysts say the 2025 output forecast is unlikely to change.

“We think producers may fear a US supply glut at a time when OPEC+ has already laid out plans to gradually increase production targets through 2025,” said Evans Energy’s Tim Evans.