Oil prices tumble 2%, reversing gains after bearish US economic data

Oil prices fell 2% on Tuesday, reversing earlier gains as U.S. consumer prices unexpectedly rose in August, giving cover for the U.S. Federal Reserve to deliver another hefty interest rate increase next week.

Brent futures for November delivery fell $2.05, or 2.2%, to $91.95 a barrel by 11:38 a.m. ET (1638 GMT). U.S. crude was down $1.73, or 2%, to $86.05 per barrel.

The consumer price index gained 0.1% last month after being unchanged in July, the U.S. Labor Department said. Economists polled by Reuters had forecast a 0.1% fall.

Fed officials are set to meet next Tuesday and Wednesday, with inflation way above the U.S. central bank’s 2% target.