By Basak Erkalan
Oil prices declined on Tuesday due to concerns that China's stimulus plan might not sufficiently boost the economy of the world's top oil importing country, fueling global oversupply concerns.
The international oil benchmark of Brent crude declined 0.2% to $71.78 per barrel at 10.45 a.m. local time (0745 GMT), down from the previous session's close of $71.91.
The US benchmark West Texas Intermediate also fell by 0.3% to $67.94 per barrel, compared to $68.12 at the prior session's close.
China approved a bill to increase the quota for issuing special debt bonds to local governments with debt problems to 6 trillion yuan ($840 billion) for 3 years.
Market players await price guidance and demand forecasts from OPEC's monthly report, expected to be released today.
Experts state that the latest stimulus plan announced by the Chinese government does not meet the expectations of investors, while market players question how the new stimulus package will affect oil prices and economic growth.
In its latest report, OPEC revised its forecast for global oil demand for this year downwards by 106,000 barrels per day (bpd) compared to its previous forecast. The decline in demand is expected to be mostly due to China.
Concerns persist that declining oil demand may lead to global oversupply.
The rise of the US dollar against other currencies contributes to the decline in oil prices. The US dollar index is currently trending upwards at 105.605. A strong dollar is expected to decrease oil demand, as it becomes more expensive for those using foreign currencies.