Oil prices fell around three per cent on Monday, with both major benchmarks hit by the possibility of quicker than expected interest-rate hikes from the Federal Reserve.
Analysts widely anticipate a bump in interest rates from the current level of 0-0.25 per cent over the coming weeks, which has proven a major headwind to sustained market rallies in recent weeks.
Brent Crude has dropped to $85.46 per barrel, with prices plummeting 2.76 per cent while WTI has fallen by over three per cent to $82.43.
Prices initially rallied this morning amid heightened political tensions between Russia-Ukraine, but faded as grim news arrived of a looming spike in interest rates.
Nevertheless, the two benchmarks are up 10 per cent this year, but hopes of prices reaching $100 have dampened as the US has rebuilt its oil inventories, offsetting shortfalls from OPEC and its allies in recent months.