Crude oil futures ended deeply in red on Tuesday amid renewed uncertainty about energy demand after weak economic data from China. Further, oil prices fell after Fed Chair Powell said interest rates will likely remain high in order to fight inflation. Citing stubbornly elevated inflation and stronger than expected economic data, Powell said during his semiannual monetary policy testimony before the Senate Banking Committee that ultimate level of interest rates is likely to be higher than previously anticipated.
Benchmark crude oil futures for April delivery fell $2.88 or 3.6 percent to $77.58 a barrel on the New York Mercantile Exchange. Brent crude for May delivery dropped $2.89 or 3.4 percent to $83.29 a barrel on London's Intercontinental Exchange.