Oil prices fell in early Asian trade on Tuesday, with investors anticipating higher-for-longer US inflation and interest rates will depress consumer and industrial demand.
Brent crude futures declined 12 cents, or 0.1%, to $83.34 a barrel by 0041 GMT. U.S. West Texas Intermediate crude (WTI) eased 8 cents, or 0.1%, to $79.72 a barrel.
Both benchmarks fell less than 1% on Monday as US Federal Reserve officials said they were awaiting more signs of slowing inflation before considering interest rate cuts, Reuters reported.
"Fears of weaker demand led to selling as the prospect of Fed rate cut became more distant," said analyst Toshitaka Tazawa at Fujitomi Securities.
Fed Vice Chair Philip Jefferson said on Monday it was too early to tell if the inflation slowdown is "long lasting," while Vice Chair Michael Barr said restrictive policy needs more time. Atlanta Fed President Raphael Bostic said it will "take a while" for the central bank to be confident that price growth slowdown is sustainable.
Lower interest rates reduce borrowing costs, freeing up funds which could boost economic growth and demand for oil.
