While supply is expected to be tight, oil prices fell on Tuesday amid fears that demand for fuel will be held back by major central banks who will keep interest rates high for longer.

West Texas Intermediate oil futures were trading 34 cents lower at $89.34 and Brent oil futures were down 38 cents at $92.91 per barrel at 0400 GMT. Tina Teng, market analyst at CMC Markets in Auckland, said that “fears of an economic recession could once again dominate oil market movements due to the rise in American bond yields following the Fed's hawkish position last week