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Oil Futures Close Sharply Lower For 2nd Straight Day

Crude oil prices fell sharply on Tuesday, extending losses from the previous session, amid concerns over a likely drop in energy demand due to slowing global economic growth.

A stronger dollar weighed as well on oil prices.

West Texas Intermediate Crude oil futures for June ended lower by $3.33 or about 3.2% at $99.76 a barrel, the lowest settlement in two weeks.

Brent crude futures were down $3.14 or 2.98% at $102.80 a barrel.

Oil prices are weighed down by concerns over demand from China due to the ongoing lockdowns in the country, and on Saudi Arabia's decision to cut oil prices.

China passenger vehicle sales tumbled 35.7% last month from a year ago to 1.06 million units, the biggest decline since March 2020 as the economy took a battering linked to lockdowns and other disruptions brought about by the government's insistence on a hard-line zero-COVID policy, China Passenger Car Association data showed.

Meanwhile, traders await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.

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