SINGAPORE, Aug 29 Reuters Oil prices slipped on Tuesday as worries that further possible U.S. interest rate hikes could pull down demand outweighed concerns that a tropical storm off the U.S. Gulf Coast may impact supply.

Brent crude was down 19 cents, or 0.2, at 84.23 a barrel by 0640 GMT, while U.S. West Texas Intermediate crude shed 24 cents, or 0.3, to 79.86.

Investors await key U.S. economic data later this week that will help determine the path of interest rates this year and next. Federal Reserve Chair Jerome Powell on Friday said the U.S. central bank may need to raise rates further to cool stubborn inflation.

Markets anticipate an 80 chance the Fed standing pat next month, Refinitiv39;s FedWatch tool showed, but the probability of a rate hike in November is now seen at roughly 56. FEDWATCH

It may be difficult for oil prices to maintain the strong bull trend seen in July at this stage. The U.S. and European economies will face downward pressure in the fourth quarter until interest rates peak, said CMC Markets analyst Leon Li.

So there might be a concern about demand, which puts pressure on oil prices. And China39;s economy still hasn39;t seen a significant improvement… Oil prices may remain volatile at this stage, and further increases in the future may require a rebound in Chinese data.

China39;s economic recovery has faltered on the back of a worsening property slump, weak consumer spending and tumbling credit growth, prompting Beijing to cut key…