Oil prices slide to 3-week low on China's virus curbs, strong dollar

 A United Nations panel's dire warning on climate change added to the gloomy mood after fires in Greece have razed homes and forests and parts of Europe suffered deadly floods last month

By Scott DiSavino

NEW YORK (Reuters) -Oil prices fell over 2% to a three-week low on Monday, extending last week's steep losses on the back of a firmer U.S. dollar and concerns that new coronavirus-related restrictions in Asia, especially China, could slow a global recovery in fuel demand.

A United Nations panel's dire warning on climate change added to the gloomy mood after fires in Greece razed homes and forests and parts of Europe suffered deadly floods last month.

Brent futures fell $1.66, or 2.4%, to settle at $69.04 a barrel, while U.S. West Texas Intermediate (WTI) crude lost $1.80, or 2.6%, to settle at $66.48.

Those were the lowest closes for both benchmarks since July 19. In intraday trade, WTI fell to its lowest level since May.

"Crude prices are declining as a slowdown in Asia disrupts the demand outlook," said Edward Moya, senior market analyst at OANDA, noting "a stronger dollar theme is (also) starting to emerge given the recovery story in the United States and that might be a short-term drag for crude prices."

Wall Street banks Goldman Sachs, JPMorgan and Morgan Stanley all cut their China growth forecasts on Monday, after export growth slowed unexpectedly and on concerns that the resurgent coronavirus could crimp economic activity.

China reported 125 new COVID-19 cases on Monday, up from 96 a day earlier. In Malaysia and Thailand, infections hit daily records.

China's export growth slowed more than expected in July after outbreaks of COVID-19 cases and floods, while import growth was also weaker than expected.

China's crude oil imports fell in July and were down sharply from the record levels of June 2020.