Nov 14 Reuters Oil prices slipped in early trade on Thursday, reversing most of the previous session39;s gains on a stronger dollar and worries of higher global output amid slow demand growth forecasts.

Brent crude futures fell 45 cents, or 0.6, to 71.83 a barrel by 0726 GMT. U.S. West Texas Intermediate crude WTI futures declined 48 cents, or 0.7, to 67.95.

The primary driver of oil prices, both in the near term and looking ahead, will be the direction of the U.S. dollar, said Phillip Nova39;s investment analyst Danish Lim, adding that supply and demand dynamics had put pressure on prices recently.

The dollar39;s recent rally has been a key downside pressure, said Lim, who expects oil markets to stay volatile, although with a bearish bias.

The U.S. dollar surged to a oneyear high, extending gains from Wednesday39;s sevenmonth high against major currencies after data showed U.S. inflation in October increased in line with expectations.

This, in turn, stoked worries of slowing demand in the United States.

The market is a concoction of weak demand factors, with the latest worry being a rally in U.S. 10year treasury yields and a surge in the 10year breakeven inflation rate to 2.35, said OANDA senior market analyst Kelvin Wong.

This increases the odds of a shallow Fed interest rate cut cycle heading into 2025 and overall, there is less liquidity to stoke an increase in demand for oil, he added.

On the supply and demand front, the U.S. Energy Information…