2023.06.0609:44:00UTC+00Oil Prices Tumble On Growth Concerns

Oil prices fell nearly 2 percent on Tuesday on concerns that a long-drawn recession in advanced economies brought on by interest-rate hikes may weigh on global demand.

Benchmark Brent crude futures fell 1.9 percent to $75.25 a barrel, while WTI crude futures were down a little over 2 percent at $70.69.

Bullish impetus from OPEC+ production cuts faded against a weaker-than-expected demand picture.

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.

Amid increasing macroeconomic headwinds, traders shifted focus toward high-profile central bank meetings due next week, including the Fed and the ECB.

Market participants believe that the U.S. Federal Reserve may skip an interest-rate hike at the end of a policy meeting next week.

Key inflation reports will be in the spotlight next week, as the data could impact whether the Fed resumes its rate hikes next month.

ECB President Christine Lagarde has already reaffirmed that it was too early to call a peak in core inflation despite "signs of moderation".