2023.09.2609:51:00UTC+00Oil Prices Decline On China Demand Worries

Oil prices fell sharply on Tuesday as developments at Chinese developers China Evergrande Group and China Oceanwide Holdings dampened hopes for economic recovery in the world's largest crude importer.

A stronger dollar following hawkish messages from global central bankers and worries about a possible U.S. government shutdown also weighed on prices.

Brent crude futures fell 1 percent to $90.95 a barrel, while WTI crude futures were down 1.1 percent at $88.77.

China's property crisis is showing signs of intensifying after embattled developer Evergrande missed a bond payment and China Oceanwide Holdings said it is facing liquidation.

Investors look ahead to the release of China's industrial profit, manufacturing and services PMI data later in the week for further direction ahead of the week-long National Day holiday beginning on Friday.

The dollar hit a new 10-month peak and U.S. bond yields surged to their highest level since October 2007, reflecting worries that interest rates will remain higher for longer in the U.S. and Europe.

Meanwhile, a U.S. government shutdown would harm the country's credit rating, agency Moody's said on Monday - highlighting the risks caused by the congressional maneuvering.