Crude oil futures ended sharply lower on Tuesday, magnifying their previous session’s losses, as growing concerns about global demand. Data showing Chinese service-sector activity to have slipped to a six-month low hurt oil prices. Oil prices fell despite a price cap on Russian oil sales as uncertainty and consequences of a continued Fed tightening weighed on the commodity. The European Union officially stopped importing oil directly from Russia since Monday. Meanwhile, price cap of $60 per barrel on Russian crude has also come into effect.
Benchmark crude oil futures for January delivery fell $2.68 or 3.5 percent at $74.25 a barrel on the New York Mercantile Exchange. Brent crude for February delivery dropped $3.12 or 3.75 percent to settle at $79.56 (Provisional) a barrel on London's Intercontinental Exchange.