- Oil prices slipped Tuesday as looming rate hikes from central banks sparked concerns of a downturn.
- Brent crude, the international benchmark, fell more than 3% to hover just above $101 a barrel.
Oil prices slipped Tuesday, dropping back from their recent climb as traders look ahead to looming rate hikes from central banks, as well as the OPEC+ meeting next week.
West Texas Intermediate shed 2.9% to $94.26 a barrel, a reversal from Monday's 4.2% climb. And Brent crude, the international benchmark, dropped 3.37% to trade at $101.55 after it had climbed 4.1% the day prior.
As inflation remains high in the US and Europe, markets are anticipating additional, aggressive rate hikes from central banks which could spark a slowdown.
On Friday, Federal Reserve Chairman Jerome Powell reiterated the central bank's commitment to taming inflation, adding that rate increases will "bring some pain to households and businesses."
Similarly, with Europe's largest economies facing historic inflation, the European Central Bank is expected to announce a half-point rate hike on September 8, though some have warned of a 75-basis-point hike more in line with the US.
Meanwhile, OPEC+ is set to convene on September 5 to discuss policy and potential changes to output. Saudi Arabia last week floated the potential for output cuts, while other OPEC officials said any cuts could follow a supply boost from Iran in the event of a new nuclear deal.
Russia, for its part, could soon face obstacles regarding its surprisingly strong oil production, according to the International Energy Agency.
"In the absence of [Western] companies, in the absence of the technology providers, in the absence of service companies, it will be much harder for Russia to maintain the production," IEA's Fatih Birol told Reuters.