Singapore May 21 2024: Oil prices extended losses on Tuesday, with investors expecting lingering U.S. inflation to keep interest rates higher for longer, depressing consumer and industrial demand.
Brent crude futures fell 64 cents, or 0.7%, to $83.07 a barrel by 0845 GMT. U.S. West Texas Intermediate crude (WTI) slipped by 64 cents, or 0.8%, to $79.16.
Both benchmarks fell by nearly 1% on Monday after U.S. Federal Reserve officials said they were awaiting more signs of slowing inflation before considering interest rate cuts.
“Fears of weaker demand led to selling as the prospect of a Fed rate cut became more distant,” said analyst Toshitaka Tazawa at Fujitomi Securities.
