Brent gives up two-month high on profit-taking

International benchmark Brent fell 2% in American trade on Monday away from recent two-month highs in Asian trade on profit-taking.

Prices are also pressured by a stronger dollar against a basket of major rivals ahead of the Federal Reserve's policy meeting this week. 

Geopolitical tensions are deteriorating in the Middle East as Iran-backed groups launched attacks and killed two US soldiers stationed in northern Jordan, while also hitting an oil tanker in the Red Sea.

Brent Price

Brent fell 2% to $81.61 a barrel, with November 30 highs at $84.04, after rising 1.1% on Friday, the third profit in a row on hopes for strong US demand.

Brent rallied 5.7% last week, the second weekly profit in a row, and the largest since October on positive global demand outlook this year.

The Dollar

The dollar index rose 0.3% on Monday, almost hitting two-month highs against a basket of major rivals. 

The gains come ahead of the Federal Reserve's policy meeting later this week, which could provide clues on the future path of US interest rates.

Geopolitical Tensions 

Investors grow more concerned after three US servicemen were killed by drone attacks on US forces based in northern Jordan near the Syrian borders.

It's the first case of US soldier death since the Hamas-Israel war commenced, putting more pressure on US President Joe Biden to counter the Iranian influence in the region.