• Oil prices dip due to China's stimulus plan, oversupply concerns, and a stronger dollar.
• The market anticipates monthly oil market reports from OPEC, the International Energy Agency, and the Energy Information Administration.
• Analysts predict OPEC+ will delay the decision to roll back their voluntary cuts, adding to oversupply pressures.
• The global market fluctuations are affecting sectors like tech, with Nvidia stock losing momentum despite previous strong returns.

Oil prices have been on a roller coaster ride, with investor disappointment over China's latest stimulus plan and oversupply concerns weighing on the market. The stronger dollar has also played a role in the fluctuation of oil prices.

Brent crude futures fell 17 cents, or 0.2%, to $71.66 a barrel, while U.S. West Texas Intermediate crude futures were at $67.84 a barrel, down 20 cents or 0.3%. Both contracts had fallen by more than 5% over the previous two trading sessions.

China, the world's biggest oil importer, unveiled a 10-trillion-yuan ($1.4-trillion) debt package to ease local government financing strains.

However, analysts believe that the amount of stimulus falls short of what would be needed to boost growth. The stronger U.S. dollar and concerns over demand in China have led to extended losses in crude oil prices.

Data released over the weekend showed anaemic consumer inflation in October and another decline in factory gate prices. The market is now looking ahead to the release of monthly oil market reports from OPEC, the International Energy Agency, and the Energy Information Administration.

OPEC's Influence on the Market

Any further downgrades on demand, particularly from OPEC, could weigh on sentiment. The Organization of Petroleum Exporting Countries (OPEC) monthly report is set to be released later on Tuesday. The market will be looking out for further downward revisions in demand from the group's outlook through 2025, which would add to downward pressure on prices.

Analysts believe that OPEC+ will be forced to keep delaying the decision to roll back their voluntary cuts. This decision will still result in surplus pressures building. The key risk to this outlook is that OPEC+ look to unwind their voluntary supply cuts from January, thereby exacerbating oversupply pressures.

The U.S. dollar held around four-month highs on Tuesday, as it is expected to benefit from policies that are likely to keep U.S. interest rates relatively higher for longer. Markets are also bracing for further signals from U.S. inflation data and Federal Reserve speakers this week.

Impact on Other Sectors

In other news, Wall Street traders kicked off a busy week by holding on to gains from last week's stock rally, while oil prices declined and bitcoin raced to a new record high. In U.S. equity markets, the Dow Jones Industrial Average rose 0.69%, to 44,293, the S&P 500 was little changed at 5,992 and the Nasdaq Composite fell 0.37%, to 19,215.

Emerging Asian currencies and equities declined after stimulus measures from China failed to meet expectations of investors, who were also disappointed by recent economic data. MSCI's broadest index of Asia-Pacific shares outside Japan declined 0.9%, while its emerging market currency index was down 0.2%.

In the tech sector, Nvidia (NASDAQ: NVDA) stock has delivered stunning returns once again in 2024 following a blistering performance last year. However, a closer look at the company's price chart will tell us that it has lost momentum over the past three months. Despite this, it won't be surprising to see Nvidia stock regaining its mojo and delivering another stellar year in 2025.