Oil continued dipping on Tuesday, as investors projected stubborn inflation that will likely maintain higher for longer interest rate in the US, putting pressure on both consumer and industrial demand.

Brent Crude dipped 0.7% to $83.07 per barrel, while US WTI plunged by 0.8% to $79.16 per barrel.

The two benchmarks dropped by almost 1% on Monday as Fed officials stated that they are anticipating more hints of eased inflation prior deciding trimming interest rate.

The comments from Fed officials implied that the interest rate will be peaked for extended period than projected earlier by the markets. That will impact the oil market as increased borrowing costs hinder the expansion of the economy and the demand for crude oil by tying up funds.

The markets shrugged off the political disruptions happening in the two main oil producing countries.

Speaking of the supply aspect, eyes of the investors are on OPEC+ meeting scheduled on June 1 to disclose the supply policy.