Oil falls to two week low on strong dollar, supply concerns

Oil prices fell on supply concerns and a stronger dollar on Tuesday, erasing more than two weeks of gains.

West Texas Intermediate, the US benchmark, was down 1.7 per cent to $52.12 a barrel, while global marker Brent slipped by 1.5 per cent to $54.90. These are their lowest levels since January 19.

The retreat comes amid rising concerns that American drillers are poised to ramp up productions following the recent rally in crude prices. The worry in the market is that a step up in US oil production would offset the productions cuts agreed to by Opec and major non-Opec members last year.

The stronger dollar also weighed on oil markets on Tuesday. As the commodity is priced in dollars, it becomes more expensive for foreign buyers when the dollar rises.