Oil prices dropped on Tuesday beyond 1%, reaching the lowest level in 2 weeks as a result of the possibility of future interest rate increases, strengthening greenback and plentiful Russian crude supplies.

Brent crude futures dropped by 1.33% at $1.13 per barrel, hitting earlier the lowest level since Jan. 13, while WTI crude futures dipped at $1.20 or 1.54% per barrel.

Investors anticipate that the U.S. Federal Reserve will hike interest rates by 25 bps tomorrow, and that BOE and ECB will follow the next day with increases of 50 bps each.

The price of oil increased for foreign purchasers on Tuesday ahead of central bank decisions, which might reduce demand for oil. Higher rates can potentially cause the world economy to sputter.

OPEC panel is expected to suggest maintaining the organization's current output policy.

The official Chinese purchasing managers' index (PMI), which gauges factory activity, increased from December to January (NBS).