Oil prices fell

Oil prices fell on Tuesday amid concerns over the possibility of further interest rate hikes in the US, which could affect fuel demand, as well as a tropical storm approaching the US Gulf Coast region.

According to Energy Press, oil prices fell on Tuesday (September 7th) due to concerns about the possibility of a further increase in the American bank interest rate and as a result, the demand will decrease by surpassing the concerns about the effect of the tropical storm on the coast of the United States on the supply.

Brent North Sea crude oil price decreased by 19 cents or 0.2% to 84 dollars and 23 cents per barrel on Tuesday at 6:40 GMT.

US West Texas Intermediate (WTI) crude oil was down 24 cents, or 0.3 percent, at $79.86 per barrel on Tuesday.

Investors are awaiting the release of key U.S. economic data later this week that will help determine the path for interest rates this year and next. Jerome Powell, the head of the US Federal Reserve Bank, said on Friday (September 4th) that in order to reduce stubborn inflation, the US central bank may need to raise interest rates further.

CMC Markets analyst Leon Lee said: “At this stage, it may be difficult to maintain the favorable upward trend in oil prices that we saw in July.” The economy of the United States and Europe will face downward pressure in the fourth quarter until the peak of interest rates.

Due to further stagnation in China’s housing sector, a decrease in consumer purchases, as well as a decrease in credit growth, China’s economic recovery has faltered, and this issue has forced Beijing to reduce the rate of important items in order to reduce the strengthening of activity in the world’s second largest economy and oil consumer.

Analysts of the National Australia Bank announced on Tuesday that although the price of Brent North Sea and West Texas Intermediate (WTI) crude oil increased by 12% and 13% respectively since the beginning of the third quarter due to OPEC+ oil production cuts, the outlook for China’s economy is still worrisome.