06.06.202319:35:00UTC+00Oil Futures Settle Lower On Demand Worries

Crude oil prices drifted lower on Tuesday as concerns about the outlook for energy demand due to economic slowdown and interest rate hikes outweighed Saudi Arabia's decision to cut production by one million barrels per day in July.

West Texas Intermediate Crude oil futures for July ended lower by $0.41 or about 0.6% at $71.74 a barrel.

Brent crude futures were down $0.55 or 0.72% at $76.16 a barrel a little while ago.

The U.S. services sector barely growth in May and new orders for manufactured goods rose by slightly less than expected in April, rekindling concerns about inflation and a potential recession.

Interest-rate concerns returned to the fore after the Reserve Bank of Australia unexpectedly raised rates again by 25 basis points and kept the door open to further hikes, saying inflation still remained too high.

German factory orders data as well as Eurozone and British retail sales figures all disappointed - adding to cautious market mood.