Dollar at multiweek peak
Fears of hawkish Fed return over Friday economic data
U.S. crude build highest since May 2021

Feb 27 Reuters Oil prices fell in volatile trade on Monday, as a stronger dollar and fears of recession risks offset gains arising from Russia39;s plans to deepen oil supply cuts.

West Texas Intermediate U.S. crude futures WTI traded at 75.98 a barrel, 34 cents, or 0.5 lower, while Brent crude futures were down 48 cents, or 0.6, at 82.68 a barrel at 0733 GMT.

Both benchmarks closed more than 90 cents higher on Friday.

The dollar hovered near a sevenweek peak on Monday after a slew of strong U.S. economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer.

A firm dollar makes commodities priced in the U.S. currency more expensive for holders of other currencies.

Crude continues to take direction from the sentiment in the broader financial markets, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

Fears of a hawkish Fed returned to the fore on Friday after the personal consumption expenditures PCE price index, shot up 0.6 last month after gaining 0.2 in December.

If riskaversion continues to grow, crude will likely come under renewed pressure, said Hari.

Adding to the downside pressure, U.S. crude oil inventories surged to the highest level since May 2021 last week, data from the Energy Information Administration EIA showed.

The EIA data continue to raise more…