Crude oil futures ended sharply lower on Tuesday on concerns about a global economic slowdown and expected build in U.S. oil inventories. Oil prices fell despite a weak dollar and hopes of a recovery in fuel demand from China. The dollar shed ground amid bets the Fed will slow the pace of interest rate hikes following a drop in consumer prices. Meanwhile, U.S. business activity contracted in January for the seventh straight month, though the downturn moderated across both the manufacturing and services sectors for the first time since September and business confidence strengthened as the new year began.
Benchmark crude oil futures for March delivery fell 1.49 or 1.8 percent at $80.13 a barrel on the New York Mercantile Exchange. However, Brent crude for March delivery dropped $2.06 or 2.34 percent at $86.13 (Provisional) a barrel on London's Intercontinental Exchange.