Oil prices experienced a slip on Tuesday as apprehensions over potential U.S. interest rate hikes, which could potentially dampen demand, took precedence over concerns about the influence of a tropical storm in the U.S. Gulf Coast on supply dynamics.
As of 0640 GMT, Brent crude observed a decline of 19 cents, marking a 0.2% decrease to reach $84.23 per barrel. Simultaneously, U.S. West Texas Intermediate (WTI) crude underwent a reduction of 24 cents, signifying a 0.3% drop to $79.86.
Investors are eagerly awaiting crucial U.S. economic data scheduled for later this week, which is expected to play a role in shaping the trajectory of interest rates for this year and the next. Federal Reserve Chair Jerome Powell had remarked on Friday that the central bank might need to implement further rate hikes to counter persistent inflation pressures, as reported by Reuters.
Brent crude slipped by 19 cents, a 0.2% decrease, reaching $84.23 per barrel by 0640 GMT, while U.S. West Texas Intermediate crude dropped by 24 cents, marking a 0.3% decrease, settling at $79.86.
Investors are looking forward to key U.S. economic data releases later in the week that will provide insights into the direction of interest rates for the current year and the upcoming one. Federal Reserve Chair Jerome Powell mentioned last Friday that the U.S. central bank might consider additional rate hikes to address ongoing inflation concerns.
China’s economic recovery has encountered obstacles due to a deteriorating property market, sluggish consumer spending, and declining credit growth. In response, Beijing has chosen to cut essential policy rates to support economic activity in the world’s second-largest economy and a major oil consumer.
