Oil prices fall on fear of high US interest rates depressing demand

Tokyo, May 21 (BNA):  Oil prices fell in early Asia trade on Tuesday, with investors anticipating lingering U.S. inflation and higher interest rates to depress consumer and industrial demand.

Brent crude futures fell 44 cents, or 0.53%, to $83.27 a barrel by 0313 GMT. U.S. West Texas Intermediate crude (WTI) slipped 51 cents, or 0.64%, to $79.29 a barrel.

Both benchmarks fell less than 1% on Monday as U.S. Federal Reserve officials said they were awaiting more signs of slowing inflation before considering interest rate cuts, Reuters reported.

Lower interest rates reduce borrowing costs, freeing up funds that could boost economic growth and demand for oil.

H.H