Oil prices have started to decline following a surge in prices the day before.

On January 6, oil prices declined amid a strong dollar, concerns about sanctions, and in anticipation of key economic data from the Federal Reserve (Fed) and U.S. payroll information later this week.

As reported by Ukrinform, this information comes from Enkorr.

Brent crude oil futures fell by 21 cents, or 0.3%, to $76.3 per barrel at 04:45 GMT after reaching their highest level since October 14 on Friday. U.S. West Texas Intermediate crude dropped by 19 cents, or 0.3%, to $73.77 per barrel, following a close on Friday at its highest level since October 11.

According to Enkorr, citing Reuters, oil had previously seen gains over five sessions, fueled by hopes for increased demand due to cold weather in the Northern Hemisphere and enhanced fiscal stimulus from China to revive its faltering economy.

Investors are also awaiting economic news to gain further insight into the Fed's outlook on interest rates and energy consumption.

The minutes from the Fed's last meeting are set to be released on Wednesday, and the December payroll report will be issued on Friday.

Market sentiment has also been influenced by supply disruptions of Iranian and Russian oil as Western nations have intensified their sanctions.

The Biden administration plans to impose additional sanctions on Russia due to its ongoing full-scale war in Ukraine, targeting its oil revenues through actions against tankers carrying Russian oil, two sources familiar with the matter reported on Sunday.

Goldman Sachs anticipates that Iran's production and exports will decline by the second quarter as a result of expected policy changes and increased sanctions from the administration of future U.S. President Donald Trump.

OPEC producer output may fall by 300,000 barrels per day (b/d) to 3.25 million b/d by the second quarter, sources indicate.

The number of oil rigs in the U.S., an indicator of future production, fell by one last week to 482, according to Baker Hughes' weekly energy report released on Friday.

However, the global oil market is overshadowed by an excess supply this year, as analysts predict that increased supplies from non-OPEC countries will largely offset the growth in global demand, along with the potential for increased production in the U.S. under Trump's administration.