WASHINGTON (dpa-AFX) - Crude oil prices fell on Tuesday amid concerns about the outlook for fuel demand due to economic slowdown, and rising prospects of more interest rate hikes.
Reports indicating possible excess supply in the market weighed as well on oil prices.
Concerns over possible supply disruptions due to political instability in Russia eased and European Central Bank (ECB) President Christine Lagarde reiterated that the central bank will continue to increase rates in July.
The downside was capped by China growth optimism and hopes of U.S. demand ahead of the summer driving season.
West Texas Intermediate Crude oil futures ended lower by $1.67 or 2.4% at $67.70 a barrel.
Brent crude futures were down $1.97 or 2.65% at $72.38 a barrel a little while ago.
Worries over supply disruptions eased somewhat after Yevgeny Prigozhin, Wagner group chief, said he had never intended to overthrow the Russian government and that his attempted coup against Russia was nothing more than a protest at the ineffectual conduct of the war in Ukraine.
'Fears of a weaker global growth outlook are not going away anytime soon. In the US, good news is bad news as that will suggest the Fed might have to do more tightening. Inflation is stubbornly high in Europe that could trigger a lot more rate hikes and a harsher recession,' says Edward Moya, Senior Market Analyst at OANDA.
'A drop below the $67.50 level could trigger momentum selling that won't stop until the $62.50 region,' Moya adds.
Copyright(c) 2023 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX