Oil prices were subdued on Tuesday after rising more than 2 percent the previous day amid supply concerns, driven by lower OPEC output and a strike in Norway.
Brent crude futures for September delivery fell 0.9 percent to $112.52 per barrel, while WTI crude futures for August settlement were marginally higher at $108.53.
The focus returned to Fed tightening and a possible global slowdown after a survey showed business growth across the euro zone slowed further last month, partly due to inflationary pressures.
Signs of a flare-up in COVID-19 cases in China also added to global growth worries and offset signs of an easing in U.S.-Sino tensions.
Chinese authorities scrambled to contain fresh outbreaks, with cases reported from at least nine provinces as of Monday, weeks after the government brought Shanghai's crippling early summer epidemic under control.
Elsewhere, Norwegian offshore workers began a strike today that is expected to reduce oil and gas output by as much as 130,000 barrels per day from Wednesday. Workers are demanding wage hikes to compensate for rising inflation.
The Norwegian Labor Ministry reiterated that it was following the conflict "closely" and would intervene if there are exceptional circumstances.
