Oil settles lower on stronger dollar, fears of oversupply

Oil prices settled lower recently, influenced by a stronger U.S. dollar and growing concerns about potential oversupply in the market. The appreciation of the dollar typically makes oil more expensive for holders of other currencies, which can reduce demand and contribute to price declines. Concurrently, fears of an oversupply have heightened investor caution, leading to adjustments in trading strategies and market forecasts. These factors combined have created a cautious atmosphere among market participants, reflecting uncertainty about near-term oil price movements. The interplay between currency strength and supply expectations continues to be a key driver in the oil market's performance. This development underscores the sensitivity of oil prices to both macroeconomic indicators and supply dynamics.