Oil edges down as inflation expected to impact fuel demand

Oil prices dipped on Tuesday, paring some gains from the previous session, as the market feared that more aggressive interest rates hikes from central banks may lead to a global economic slowdown and soften fuel demand.

Brent crude futures for October settlement dropped 56 cents, or 0.5 per cent, to $104.53 a barrel by 0620 GMT, after climbing 4.1 per cent on Monday, the biggest increase in more than a month.

The October contract expires on Wednesday and the more active November contract was at $102.57, down 0.4 per cent.