Oil prices are falling amid concerns about demand

Oil prices fell on Tuesday, August 29, amid fears that further potential interest rate increases in the United States would lead to lower demand, and this outweighed the impact of concerns about the possibility of a tropical storm off the US Gulf Coast affecting supplies.

By 06:40 GMT, Brent crude fell 19 cents, or 0.2%, to $84.23 a barrel, while US West Texas Intermediate crude fell 24 cents, or 0.3%, to $79.86.

Investors are awaiting important data on the US economy later this week that will help determine the course of interest rates this year and next.

US Federal Reserve Chairman Jerome Powell said on Friday that the Fed may have to raise interest rates further to calm inflation.

Meanwhile, Hurricane Adalia lashed western Cuba on Monday and turned into a near hurricane as it headed towards Florida. The storm is likely to cause power outages and could affect crude oil production on the eastern side of the US Gulf Coast.

The focus this week will be on the US PCE price index due for release on Thursday and August non-farm payroll data on Friday.

Investors are still concerned about the economic recovery in China, as well as about the demand for oil in the second largest consumer in the world.

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