oil futures dropped by more than 5 on tuesday with worries over the economic outlook and energy demand along with news reports that helped to ease concerns over tight supplies sending prices to their lowest finish in more than a week oil investors are worried about inflation weakening global economies analysts on the stonex energy team in kansas city wrote in a tuesday newsletter inflation is near doubledigit territory in many of the worlds biggest economies causing more aggressive interest rate hikes that will likely curtail economic growth and weigh on fuel demand a source in one of the opec delegations told russian news agency tass that the organization of the petroleum exporting countries and their allies are not currently discussing the possibility of oil production cuts thats contributing to pressure on oil prices tuesday said phil flynn senior market analyst at the price futures group the news report is contrary to remarks last week by saudi arabias energy minister who signaled that opec could consider production cuts opec will hold their next meeting on monday also weighing on oil prices tuesday according to flynn is a tweet from iran international which said that iran and the us have reached an agreement on the revival of the iran nuclear deal it cited comments from a former international atomic energy agency official and said the deal is set to be announced in the next two or three weeks there has been no official announcement of a deal from washington or tehran however a us state department spokesperson tweeted that the report was false unrest in libya and iraq served to help boost crude prices monday while traders were also keeping an eye on protests in iraq after influential cleric moqtada alsadr said he was quitting politics sadr supporters have surrounded the majnoon oil field near basra since monday evening as well as the 210000 barreladay basrah refinery reuters reported the report however said that crude exports from iraq opecs secondlargest producer were so far unaffected crudes rally on monday also came as us equities tumbled for a second day with financial markets rattled by remarks last friday by federal reserve chairman jerome powell who dashed hopes the fed would relent on monetary policy tightening given signs inflation may be peaking meanwhile the energy information administration will release its weekly data on us petroleum supplies wednesday morning on average analysts expect the eia to report a fall of 19 million barrels in domestic crude supplies according to a poll conducted by sp global commodity insights they also forecast inventory declines of more than 13 million barrels for gasoline and nearly 12 million barrels for distillates