LONDON, Jan 3 (Reuters) – Oil prices edged lower in volatile trade on Tuesday as weak demand data from China, a gloomy economic outlook and a stronger U.S. dollar weighed. Brent crude futures fell $1.07, or 1.25%, to $84.84 a barrel by 1447 GMT. U.S. West Texas Intermediate crude was down $1.15, or 1.43%, at $79.11, having shed more than $2 earlier in the session.Both contracts had risen more than $1 in early trade. “The outlook remains highly uncertain, though, which should ensure oil prices remain highly volatile.”The Chinese government has raised export quotas for refined oil products in the first batch for 2023. Traders attributed the increase to expectations of poor domestic demand as the world’s largest crude importer continues to battle waves of COVID-19 infections. In further bearish news, China’s factory activity shrank in December as the surging COVID-19 infections disrupted production and weighed on demand after Beijing largely removed anti-virus curbs. NN: The signs of impending doom are very apparent to me….. Ask yourself this question, Why has China upped its export quota of refined products? Answer: since the economy is sucking shut they are seeing demand plunge. An it will get far far worse!