Brent crude, the European benchmark, fell 2.3% to $74.50 per barrel. Meanwhile, US West Texas Intermediate (WTI) dropped to $69.80, its lowest level in three weeks.

The decline reflects growing fears that energy demand will slow amid signs of reduced industrial activity in China and Germany.

Traders indicated that the market overcompensated for expectations of production cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

This was compounded by the strength of the dollar, which makes the commodity more expensive for buyers using other currencies.

Despite this, losses were limited by geopolitical tensions in the Red Sea, which are keeping supplies on alert. Goldman Sachs analysts warned that the balance between supply and demand remains fragile heading into the Northern Hemisphere summer.

In this context, the next meeting of the OPEC+ monitoring committee, scheduled for the end of the month, will be key in defining production levels.

Investors are now awaiting the weekly US crude oil inventories to be published tomorrow by the International Energy Agency (IEA). At the close, oil was trading with volatility and a downward trend.

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