Oil prices fell slightly on Tuesday, as the market offset fears of lower demand due to a possible hike in US interest rates, to concerns that a tropical storm off the US Gulf Coast could affect supplies.
By 0032 GMT, Brent crude had fallen to $84.40 a barrel. West Texas Intermediate crude fell three cents to $80.07.
Investors are looking forward to important data from the US economy later this week that will help determine the course of interest rates this year and next.
US Federal Reserve Chairman Jerome Powell said on Friday that the bank may have to raise interest rates further to calm inflation.
Meanwhile, Tropical Storm Adalia lashed western Cuba on Monday and turned into a hurricane as it headed towards Florida. The storm is likely to cause power outages and may affect crude oil production on the eastern side of the US Gulf Coast.
The focus this week will be on the US PCE price index due for release on Thursday and the non-farm payroll data for August on Friday.
Investors are still concerned about the economic recovery in China, as well as about the demand for oil in the second largest consumer in the world.
