Despite seven weeks of increases due to tightening supply from OPEC+ output limits, oil prices fell more than 1% on Monday due to worries about China's sputtering economic recovery and solid greenback.

Brent crude futures plunged 1.2% to $85.74 per barrel meanwhile US West Texas Intermediate crude slipped 1.3% to $82.12 per barrel.

Prices fell as the dollar index increased after slightly higher producer prices in the United States in July raised Treasury yields amid forecasts that the Federal Reserve is done raising interest rates.

Since buyers who use foreign currencies must pay more for oil, a higher dollar reduces demand.

The price of oil may fluctuate this week due to China's slow economic recovery and a stronger dollar, but OPEC+ has stated it will take all necessary steps to reduce production and stabilize markets.

The International Energy Agency stated in its monthly report on Friday that supply reductions by Saudi Arabia and Russia, two members of OPEC+, are anticipated to deplete oil inventories over the course of this year and potentially push prices even higher.