Crude oil future ended deeply lower on Tuesday, extending their previous session’s losses, amid fresh concerns over demand from China, where there has been a surge in Covid-19 cases, and on easing worries about supply disruptions. Expectations of positive developments in the Russia-Ukraine ceasefire talks eased fears of further supply disruptions and weighed on oil prices. Meanwhile, traders also looked ahead to the Federal Reserve's monetary policy announcement on Wednesday. The Fed is widely expected to hike rates by 25 basis points. The focus will be on the central bank's accompanying statement, which is expected to provide clues about future rate hikes.
Benchmark crude oil futures for April delivery fell $6.57 or 6.4 percent to settle at $96.44 a barrel on the New York Mercantile Exchange. Brent crude for May delivery dropped $6.99 or 6.5 percent to settle at $99.91 a barrel on London's Intercontinental Exchange.