Brent Crude Falls on Surplus Fears; Dollar Consolidates Ahead of Key Events

Brent crude oil extended its decline amid reports of a supply surplus that has weighed on market sentiment. The commodity's weakness comes as the US dollar trades in a narrow range, with traders awaiting Federal Reserve official Kevin Warsh's speech in Sintra, Portugal, and critical US labor market data later this week.

Hawkish commentary from the Fed Chair at the June FOMC meeting triggered a sharp sell-off across financial markets, driving Treasury yields higher and underscoring policy-tightening fears. The stronger dollar and elevated yields continue to act as headwinds for dollar-denominated commodities like Brent crude, which have added to bearish pressure on the oil complex.