Crude oil prices dropped to an 11-month low on Tuesday amid concerns about the outlook for energy demand.
Oil prices fell despite a price cap on Russian oil sales as uncertainty and consequences of a continued Fed tightening weighed on the commodity.
Data showing Chinese service-sector activity to have slipped to a six-month low hurt oil prices.
West Texas Intermediate Crude oil futures for January ended lower by $2.68 or about 3.5% at $74.25 a barrel.
Brent crude futures were down $3.12 or about 3.75% at $79.56 a barrel a little while ago.
The European Union officially stopped importing oil directly from Russia since Monday. Meanwhile, price cap of $60 per barrel on Russian crude has also come into effect.
Markets now look ahead to weekly crude oil inventory data. The American Petroleum Institute (API) is scheduled to release its weekly oil report later today, while the Energy Information Administration (EIA) will come out with its oil stockpiles data Wednesday morning.