Crude oil futures ended lower on Tuesday amid continued concerns about the outlook for demand from China. Traders also awaited the Federal Reserve's monetary policy announcing and weekly inventory data. The Fed, which is scheduled to announce its monetary policy on Wednesday, is widely expected to leave rates unchanged. The accompanying statement will be eyed for clues about the central bank's likely move on interest rate at its September meeting. Besides, a lack of immediate escalation in tensions between Israel and Hezbollah also contributed to the drop in oil prices.
Benchmark U.S. crude oil futures for September delivery fell $1.08 or about 1.42% to $74.73 per barrel on the New York Mercantile Exchange. Brent crude for September delivery dropped $1.15 or 1.44% to $78.63 per barrel on London's Intercontinental Exchange.