Oil prices fell in choppy trade on Tuesday, as growth worries overshadowed investor optimism that China would see significant demand recovery.
Benchmark Brent crude futures slipped 0.3 percent to $119.16 in European trade, while WTI crude futures were down 0.3 percent at $118.12.
Economists at Barclays said that a series of rate hikes by ECB will ultimately contribute to an economic recession.
Investors await the monetary policy announcement by the European Central Bank (ECB) on Thursday, with the central bank expected to confirm an end to bond buying.
Meanwhile, a flattening of the yield curve is also seen as an indicator of a possible recession.
Bond yields remained supported after Australia's central bank surprised markets by lifting the official cash rate by a bigger-than-expected 50 bps.
On the positive side, more Covid-19 related restrictions eased in Shanghai and other major cities, raising hopes for a demand recovery.
U.S. crude supply data from the American Petroleum Institute is due later in the day, with inventories expected to fall as the peak period for U.S. demand kicks off with the summer driving season.
