Oil prices edged lower on Tuesday on worries about a slowing Chinese economy crimping demand, though a growing consensus that the U.S. Federal Reserve will begin cutting its key interest rate as soon as September limited declines.
Brent futures fell 9 cents, or 0.1%, to $84.76 a barrel by 12:21 GMT, while U.S. West Texas Intermediate crude dropped 13 cents, or 0.2%, to $81.78.
China's economy grew much slower than expected in the second quarter, hamstrung by a protracted property downturn and job insecurity.
Lower interest rates decrease the cost of borrowing, which can boost economic activity and oil demand.
While crisis in the Middle East has not impacted supply, attacks on ships in the Red Sea has forced vessels to take longer routes, meaning oil remains on the water for longer.
Persons:
Brent, Jerome Powell, Alexander Novak
Organizations:
U.S . Federal Reserve, U.S, West Texas, Organization of, Petroleum
Locations:
Yemen, Gaza, Russian, OPEC