Oil prices fall as expectations of an interest rate hike overshadow supply scarcity

Oil prices fell in early trading on Tuesday amid concerns that fuel demand will be affected by major central banks keeping interest rates high for longer, even as supply is expected to tighten.

Brent crude futures fell 87 cents to $92.42 a barrel by 0630 GMT, while US West Texas Intermediate crude futures fell 87 cents to $88.81.

While supply is still scarce, as Russia and Saudi Arabia extended production cuts until the end of the year, Moscow on Monday eased its temporary ban on gasoline and diesel exports.

Oil prices have risen about 30 percent since mid-year, driven mostly by supply shortages, which JPMorgan said has wiped half a percentage point off global GDP growth in the second half of 2023.