Oil prices slump further by 5%

Brent futures fell $1.07, or 1.4%, to $74.25 a barrel by 0818 GMT, while West Texas Intermediate crude (WTI) fell $1.15, or 1.6%, to $70.51.

Both benchmarks closed at their lowest since late March in the previous session, when they also recorded their biggest one-day percentage declines since early January.

The Fed is expected to hike interest rates by an additional 25 basis points on Wednesday to combat inflation, while the European Central Bank is also expected to raise rates at its regular policy meeting on Thursday.

More hikes could slow economic growth and hit energy demand.

Australia

In Australia, the central bank stunned markets by hiking its cash rate on Tuesday and warned that further tightening may be needed to combat high inflation.

Energy prices are also under pressure after data from China over the weekend showed manufacturing activity fell unexpectedly in April.

China is the world’s largest energy consumer and top buyer of crude oil.