Oil prices fall Monday due to concerns that the US Federal Reserve’s interest rate hikes could spark global economic fatigue and thus degrade fuel demand.

A barrel of European reference oil Brent trades for USD 95.47 Monday morning against USD 96.46 Friday afternoon. US benchmark crude West Texas Intermediate sells concurrently for USD 89.53 against USD 90.63.

“Investors were worried that a possible steep rate hike by the Fed would cause an economic slowdown and sap fuel demand,” Reuters cites Nissan Securities General Manager Hiroyuki Kikukawa saying.

Meanwhile, oil prices are under pressure stemming from sliding fuel demand in China in connection with power outages several places in the country.

“China’s power restriction in some regions is also a concern as it could affect economic activity,” Kikukawa adds.

Last week, the country’s southwestern province of Sichuan started reducing electricity flow to residences, offices and shopping centers due to heavily strained power supply owing to extreme heat waves and drought.

Investors await Fed Chair Jerome Powell’s perspectives this Friday when he speaks at an annual central bank conference convening in Jackson Hole, Wyoming.

The next interest rate meeting at US central bank is scheduled for Sept. 21.

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