Oil prices edged lower on Monday in thin trade ahead of the Christmas holiday on concerns about a supply surplus next year and a strengthened dollar. Brent crude futures were down 66 cents, or 0.9%, to $72.

Brent crude is expected to average $71.57 a barrel next year, while West Texas Intermediate is seen at $67.44 a barrel. Global oil demand growth slowed significantly this year.

Crude oil prices were in the red on Monday as oversupply concerns and poor demand outlook continued to weigh on sentiments. Oil prices had fallen last week when the Federal Reserve signalled fewer interest rate cuts in 2025 than previously anticipated.

Oil prices stabilised on Monday after losses last week as lower-than-expected U.S. inflation data offset investors' concerns about a supply surplus next year. Brent crude futures were down by 38 cents,