WASHINGTON (dpa-AFX) - Crude oil prices fell sharply on Tuesday, extending losses to a third straight session, amid concerns about the outlook for energy demand after data showed contraction in Australian and Japanese business activity in the month of October.
Eurozone business activity contracted as well this month. UK's private sector activity contracted and a measure of German consumer confidence weakened, raising concerns over fuel demand.
The dollar's rally weighed as well on oil prices.
West Texas Intermediate Crude oil futures for December ended lower by $1.75 or about 2.1% at $83.74 a barrel.
Brent crude futures settled at $88.07 a barrel, giving up $1.76 or about 2%.
'Crude prices are lower as a strong dollar emerged after a mixed round of global flash PMIs. It looks like the US economy refuses to break and that means the risks of more tightening and that the higher for longer mantra will last a while longer,' says Edward Moya, Senior Market Analyst at OANDA.
'Oil is modestly lower and that could continue if the Israel-Hamas war continues to have diplomacy at work,' Moya adds.
Investors await weekly inventory data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API data is due later today, while EIA's report is due Wednesday morning.
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