Oil prices declined on Tuesday, paring some gains from the previous session. The market feared that more aggressive interest rates increases from central banks may lead to a global economic slowdown and soften fuel demand.
Brent crude futures for October settlement decreased $3.58, or 3.4 percent to $101.55 a barrel, after rising 4.1 percent on Monday, the biggest increase in more than a month.
The October contract expires on Wednesday and the more active November contract was at $101.01, decreased 1.9 percent.
U.S. West Texas Intermediate crude was at $94.34 a barrel, decreased $2.67, or 2.8 percent following a 4.2 percent rise in the previous session.
“Risk appetite has cooled over an anticipation that the Federal Reserve would continue to increase interest rates … A pull-back of natural gas prices in Europe also adds uncertainties to the picture of energy crisis,” analysts from Haitong Futures said.
“As a major oil exporter with an output of over 4 million barrels per day, (Iraq’s) domestic situation has no less impact on oil prices than Iran,” Haitong’s analysts said.
