LONDON, May 31 Reuters Oil prices fell by over 2 on Wednesday on a stronger U.S. dollar and as weak data from top oil importer China raised demand fears.

Brent crude futures for August delivery were down 1.75, or 2.37, to 71.96 a barrel at 1151 GMT. U.S. West Texas Intermediate crude WTI fell 1.90, or 2.74, to 67.56.

Both benchmarks fell by more than 4 on Tuesday.

Brent39;s July contract , which expires on Wednesday, and the U.S. benchmark were on track for monthly declines of more than 9 and 12, respectively.

China39;s manufacturing activity contracted faster than expected in May on weakening demand, with the official manufacturing purchasing managers39; index PMI down to 48.8 from 49.2 in April. The outcome lagged a forecast of 49.4.

Further pressure came as the U.S. dollar rose to its highest in over two months, making commodities more expensive for buyers holding other currencies and weighing on oil demand.

The U.S. dollar index , which measures the greenback against six major peers, saw support from cooling European inflation and progress on the U.S. debt ceiling standoff, which will advance to the House of Representatives for debate on Wednesday.

The dollar could add to recent gains if Friday39;s U.S. May nonfarm payrolls number is stronger than expected and raises the probability of the Federal Reserve raising rates again in June.

Market players are preparing for the upcoming June 4 meeting of OPEC the Organization of the Petroleum Exporting Countries and…