NEW YORK (CNBC) - Oil fell below $75 a barrel on Monday as rising risk aversion weighed on stock markets and boosted the U.S. dollar, although crude pared earlier losses on signs that some U.S. Gulf output will stay offline for months due to storm damage.
The dollar, seen as a safe haven, rose as worries about Chinese property developer Evergrande’s solvency spooked equity markets and investors braced for the Federal Reserve to take another step towards tapering this week.
“Far East stock markets and the strong dollar are affecting oil,” said Tamas Varga of oil broker PVM. “Nonetheless, unless all hell breaks loose, the positive sentiment ought to prevail.”
Brent crude fell 92 cents, or 1.2%, to $74.42 a barrel, having dropped as low as $73.58 earlier in the session. U.S. West Texas Intermediate (WTI) declined $1.06, or 1.5%, to $70.91.
A stronger greenback makes U.S. dollar-priced oil more expensive for holders of other currencies and gen