24.01.202319:03:00UTC+00Oil Futures Settle Sharply Lower On Demand Concerns

Despite a weak dollar and hopes of a recovery in fuel demand from China, crude oil prices fell sharply on Tuesday amid concerns about the outlook for oil demand due to a potential recession in Europe and the U.S.

West Texas Intermediate crude futures for March ended lower by $1.49 or about 1.8% at $80.13 a barrel.

Brent crude futures were down $2.06 or 2.34% at $86.13 a barrel a little while ago.

The dollar shed ground amid bets the Fed will slow the pace of interest rate hikes following a drop in consumer prices.

Data from Markit Economics showed the S&P Global US Manufacturing PMI increased to 46.8 in January of 2023 from 46.2 a month earlier. Still, the reading continued to point to another contraction in factory activity.

Traders now await weekly oil reports from the American Petroleum Institute (API) and U.S. Energy Information Administration (EIA). The API's report is due later today, while the EIA is scheduled to release its inventory data Wednesday morning.