WASHINGTON (dpa-AFX) - Oil prices fell sharply in choppy trade on Tuesday amid concerns that aggressive interest rate hikes by central banks could curtail economic growth and weigh on fuel demand.
The focus also shifted to the upcoming OPEC+ meeting and potential supply cuts.
Benchmark Brent crude futures fell 1.9 percent to $100.97 a barrel, while WTI crude futures were down 1.7 percent at $95.35.
Both contracts jumped over 4 percent on Monday, marking the biggest increase in more than a month.
Demand worries resurfaced amid talk of a hefty European Central Bank rate hike in September.
Futures markets have odds of better than two-thirds that the European Central Bank will raise rates by 75 basis points in September.
ECB Chief Economist Philip Lane said in a speech that the upcoming September monetary policy meeting will be the 'start of a new phase' for the central bank.
The Organization of the Petroleum Exporting Countries, Russia, and allies, a group called OPEC+, will be meeting to set policy on Sept. 5 after top oil exporter Saudi Arabia warned about the possibility of cutting output to offset any major decline in crude rates.
As recession worries mount, oil producing nations seem intent on keeping the price of crude oil at currently elevated levels.
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