Oil Prices Falling

Oil prices fell on Tuesday and took a breather after rising more than $5 a barrel in the previous session, with the falling dollar supporting buying interest and expectations that the US Federal Reserve's interest rate hike may be less than thought.

Brent crude for September delivery fell 69 cents to $105.58 a barrel by 00:36 GMT. The contract rose 5.1% on Monday, its biggest percentage gain since April 12. WTI crude oil futures for August delivery fell 65 cents to $101.95 a barrel. The contract rose 5.1% on Monday, its biggest percentage gain since May 11. The WTI contract for August delivery expires on Wednesday and the more actively traded September futures contract fell 63 cents to $98.79 a barrel. Both indicators recorded weekly declines of more than 5% last week. Oil prices have been oscillating between concerns that Western sanctions on Russian crude and fuel supplies could disrupt trade flows to refineries and end-users and that central banks' efforts to contain rising inflation could trigger a recession that would dampen future fuel demand. Two US Federal Reserve officials indicated last week that the central bank will likely raise interest rates by only 75 basis points at its meeting on July 26-27. A smaller increase could mean less economic distress that would reduce fuel demand.