OPEC seen sticking with oil output policy at Feb. 1 meeting
Investors watch for central bank rate hikes
Positive China data caps weakness

Jan 31 Reuters Oil prices fell on Tuesday as the threat of further interest rate increases and ample Russian crude flows outweighed demand recovery expectations from China.

March Brent crude futures declined 25 cents to 84.65 per barrel by 0715 GMT. The March contract expires on Tuesday and the more heavily traded April contract fell by 38 cents, or 0.45, to 84.12.

Likewise, U.S. West Texas Intermediate WTI crude futures dropped by 44 cents, or 0.56, to 77.46 a barrel.

Oil markets are facing downside pressure as riskoff trades prevail ahead of the Fed meeting, along with a strengthened USD, said CMC Markets analyst Tina Teng.

The demand outlook is still uncertain as Russia39;s exports seem unaffected by sanctions, despite China39;s reopening, she added.

Investors expect the U.S. Federal Reserve will raise interest rates by 25 basis points on Wednesday, with a halfpoint increase by the Bank of England and European Central Bank the following day. Higher rates could slow the global economy and weaken oil demand.

The market also turned its attention to a planned virtual meeting on Feb. 1 at 1100 GMT of the ministers of the Organization of the Petroleum Exporting Countries OPEC and others including Russia, a group known as OPEC.

The panel is expected to recommend keeping the oil producer group39;s current output policy unchanged…