On Tuesday, oil prices weakened, as evidenced by a weakening US housing market. However, movements are limited before the start of the latest US Federal Reserve meeting on Wednesday.

By 09:30 ET (13:30 GMT), US crude futures traded 1.2 per cent lower at USD 84.34 a barrel, while the Brent contract fell 0.9 per cent to USD 91.19. US Gasoline RBOB Futures were up 0.2 per cent at USD 2.4696 a gallon.

In August, the number of permits given to build new US houses declined, falling to its lowest level in two years. Higher building and borrowing costs toughened demand, spurring fears that higher interest rates were hindering economic activity in the world’s largest economy.

The Fed is considerably expected to increase interest rates by 75 basis points on Wednesday and signal more hikes as it moves to curb inflation reaching a 40-year high.

Data released this week showed that US road travel fell 3.3 per cent in July, as high fuel prices weighed. These prices have recently dipped, but rising interest rates could further reduce discretionary spending.