Oil prices slipped on Tuesday, falling from two-month highs as concerns over a global economic slowdown crept back into the market, and a stronger dollar also weighed. Prices sagged after a survey showed euro zone business expansion nearly stalled in January. That, coupled with disappointing U.S. factory orders data a day earlier, stoked worries about softer demand, analysts said. Brent crude futures fell 53 cents to settle at $61.98 a barrel. They touched their highest level in more than two months at $63.63 the previous day. U.S. crude futures dropped 90 cents to settle at $53.66 a barrel, or down 1.7 percent.
Futures held lower after the close, when the American Petroleum Institute said U.S. crude stocks rose by 2.5 million barrels last week, more than analyst expectations. Oil also felt pressure from a strengthening dollar, which rallied for a fourth straight session, which makes crude more expensive for non-U.S. buyers. “It really seemed to be a dollar influence here today,” said John Kilduff, a partner at Again Capital Management. “It was interesting that we didn’t catch a bid along with the stock market because that had been the correlation.”