Oil Futures Settle Lower On Demand Worries

Crude oil prices fell sharply on Tuesday amid concerns about interest rate hikes and worries about the outlook for energy demand.

A firm dollar amid expectations of a sharp interest rate hike by the Federal Reserve on Wednesday weighed on oil prices.

The outlook for energy demand is somewhat weak as it is feared that aggressive interest rate hikes by central banks might hurt growth, which in turn will result in a drop in demand for oil.

West Texas Intermediate Crude futures for October ended lower by $1.28 or about 1.5% at $84.45 a barrel on expiration day.

WTI Crude futures for November, ended down $1.42 or 1.7% at $83.94 a barrel.

Brent crude futures were down $1.49 or 1.6% at $90.51 a barrel a little while ago.

Traders also looked ahead to weekly crude inventories data from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while EIA is scheduled to release its inventory data Wednesday morning.

A Reuters poll showed crude oil stocks in the U.S. likely rose by 2 million barrels last week.

Traders also noted a report from OPEC+ that showed the group fell short of its output target by 3.58 million barrels per day in August, which was about 3.5% of global oil demand.

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