By Arathy Somasekhar
(Multibagger) - 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.
Crude oil futures fell slightly, with Brent crude down 0.1% to $84.76 a barrel and WTI crude dropping 0.2% to $81.78.
China's economy grew at a slower pace than expected in the second quarter, affected by a property downturn and job insecurity.
On the other hand, Fed Chair Jerome Powell's comments on U.S. inflation readings hinted at a possible interest rate cut, which could stimulate economic activity and oil demand.
Additionally, geopolitical tensions in the Middle East, including attacks on oil vessels, have raised concerns about oil supply disruptions.
Russian Deputy Prime Minister Alexander Novak also mentioned a balance in the global oil market due to production agreements among OPEC and its allies.
## Analysis:
Oil prices are affected by various factors, including economic conditions in China, expectations of interest rate cuts by the Federal Reserve, and geopolitical tensions in the Middle East. A slowdown in the Chinese economy could lead to lower oil demand, while a potential rate cut by the Fed may stimulate economic activity and oil consumption. Geopolitical events, such as attacks on oil vessels, can disrupt oil supply and impact prices. Overall, these factors contribute to the volatility in oil markets and can have implications for investors and consumers.