Crude oil futures ended lower on Tuesday as data showing a bigger than expected increase in U.S. producer prices raised concerns that Federal Reserve will keep interest rates higher for a longer period. The Labor Department said its producer price index for final demand climbed by 0.5% in April after a revised 0.1% dip in March. Street had expected producer prices to rise by 0.3% compared to the 0.2% uptick originally reported for the previous month. The report also said the annual rate of producer price growth accelerated to 2.2% in April from a downwardly revised 1.8% in March.
Benchmark crude oil futures for June delivery fell $1.10 or about 1.4% to settle at $78.02 a barrel on the New York Mercantile Exchange. Brent crude for July delivery dropped $0.94 or 1.12% to $82.42 per barrel on London's Intercontinental Exchange.