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Crude oil futures end sharply lower amid fears of potential recession in U.S.

03 May 2023 Evaluate

Crude oil futures ended sharply lower on Tuesday as investors focused on economic worries and awaited Wednesday’s Federal Reserve policy decision. The Fed is widely expected to raise interest rates by 25 basis points. Data showing a contraction in Chinese manufacturing activity in April raised concerns about the outlook for oil demand. Worries about a U.S. debt default, and a drop in U.S. factory output weighed as well on oil prices.

Benchmark crude oil futures for June delivery fell $4 or 5.3 percent to settle at $71.66 a barrel on the New York Mercantile Exchange. Brent crude for July delivery dropped $3.99 or 5 percent to settle at $75.32 a barrel on London's Intercontinental Exchange.