Oil falls on demand worry as Fed ‘make or break moment’ approaches

Oil prices eased on Monday after rising two per cent in the previous session, as investors focused on short-term demand concerns stemming from crucial upcoming US inflation data and refinery maintenance in Asia and the United States. Brent crude futures fell 74 cents, or 0.9pc, to $85.65 a barrel by 0400 GMT after a 2.2pc gain on Friday. US West Texas Intermediate crude was at $78.99 a barrel, down 73 cents, or 0.9pc, after rising 2.1pc in the previous session. “Crude prices are softening as energy traders anticipate a potentially weakening crude demand outlook as a pivotal inflation report could force the Fed to tighten policy much more aggressively,” said Edward Moya, senior analyst at Oanda, referring to US consumer price data due on Feb 14. “This week could deliver a make or break moment in how bad of a recession Wall Street prices in.” The US Federal Reserve has been raising interest rates to rein in inflation, leading to concerns that the move would slow economic activity and demand for oil.