Brent, WTI contracts earlier fell by around 1 a barrel
Beijing districts close schools as China39;s COVID cases rise
Higher dollar weighs on prices

LONDON, Nov 21 Reuters Oil prices dropped to trade near twomonth lows on Monday, having earlier slid by around 1 a barrel, as supply fears receded while concerns over fuel demand from China and U.S. dollar strength weighed on prices.

Brent crude futures for January had slipped 65 cents, or 0.7, to 86.97 a barrel by 1000 GMT.

U.S. West Texas Intermediate WTI crude futures for December were at 79.71 a barrel, down 37 cents or 0.5, ahead of the contract39;s expiry later on Monday. The more active January contract was down 50 cents or 0.6 to 79.61 a barrel.

Both benchmarks closed Friday at their lowest since Sept. 27, extending losses for a second week, with Brent down 9 and WTI 10 lower.

Apart from the weakened demand outlook due to China39;s COVID curbs, a rebound in the U.S. dollar today is also a bearish factor for oil prices, said CMC Markets analyst Tina Teng.

Risk sentiment becomes fragile as all the recent major countries39; economic data point to a recessionary scenario, especially in the UK and euro zone, she said, adding that hawkish comments from the U.S. Federal Reserve last week also sparked concerns over the U.S. economic outlook.

New COVID case numbers in China remained close to April peaks as the country battles outbreaks nationwide and in major cities. Schools in some districts in the capital Beijing…