Oil prices fell about 1 percent on Monday as news that China's capital Beijing is facing an "explosive" COVID-19 outbreak connected to a bar stoked concerns about global growth and dented hopes of a rapid increase in demand from the world's largest crude importer.
The dollar's surge amid heightened prospects for a further tightening of monetary policy by the Federal Reserve also weighed on oil prices.
Benchmark Brent crude futures fell about 1 percent to $120.85 per barrel, while U.S. crude futures were down 1.1 percent at $119.34.
Chinese cities are experiencing a massive COVID surge, raising concerns about the outlook for oil demand.
Beijing has been tightening COVID curbs since Thursday, with at least two districts closing some entertainment venues after a flare-up in a neighborhood full of nightlife, shopping and embassies.
Authorities said on Saturday that all 61 new cases uncovered in the city on Friday had either visited the Heaven Supermarket Bar or had links to it.
Shanghai has also imposed fresh COVID-related restrictions in several parts of the city due to a surge in new cases.
