London, January 31 (BNA): Oil prices fell on Tuesday as expectations of higher interest rates and large inflows of Russian crude outpaced expectations of a recovery in demand from China.
Brent crude futures for March fell $1.01, or 1.19%, to $83.89 a barrel by 0920 GMT. The March contract expires on Tuesday and the most heavily traded April contract was down 90 cents, or 1.07%, at $83.60.
Similarly, US West Texas Intermediate crude futures fell 92 cents, or 1.18%, to $76.98 a barrel, Reuters reported.
“Central banks and the group of OPEC + producers will come into effect in the next few days. Interest rate decisions will shed some light on the prospects for economic growth and oil demand growth,” said Tamas Varga of PVM Oil Brokerage.
Investors expect the US Federal Reserve to raise interest rates by 25 basis points on Wednesday, with increases of half a point coming from the Bank of England and the European Central Bank the next day.
Higher rates could slow the global economy and dampen demand for oil.
ZHB