The price of oil decreases, taking a pause from a sharp surge

Oil prices declined on Tuesday, taking a breather after rising more than $5 a barrel in the previous session, as a weakening dollar boosted buying excitement and investors speculated that the U.S. Federal Reserve may not hike interest rates as anticipated.

Brent oil futures for September delivery fell 69 cents to $105.58 per barrel at 00:36 GMT. The 5.1% increase on Monday was the greatest percentage gain since April 12.

WTI oil futures for August delivery fell 65 cents to $101.95 per barrel. On Monday, the contract jumped by 5.1%, the largest percentage gain since May 11.

The WTI August contract expires on Wednesday, while the more actively traded September future fell 63 cents to $98.79 a barrel.

Both benchmarks had weekly declines of more than 5 percent last week.

As Western sanctions on Russian crude and gasoline supplies impeded trade flows to refiners and end-users, oil prices oscillated between supply anxieties and rising concern that central bank measures to tame surging inflation may cause a recession that would diminish future fuel demand.

This week, two Federal Reserve officials stated that the central bank is unlikely to raise interest rates by more than 75 basis points at its July 26-27 meeting.

A drop in the rate of growth might result in a less severe economic recession, hence reducing fuel use.