TOKYOBEIJING, Sept 26 Reuters Oil prices fell on Tuesday amid concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer, even with supply expected to be tight.

Brent crude futures were down 87 cents at 92.42 a barrel at 0630 GMT, while U.S. West Texas Intermediate crude futures were trading 87 cents lower at 88.81.

Fears of an economic recession may again dominate the oil markets movement due to surging U.S. bond yields following the Feds hawkish stance last week, said Tina Teng, a market analyst at CMC Markets in Auckland.

The world39;s top economic policymakers, the U.S. Federal Reserve and the European Central Bank, have over recent days reiterated their commitment to fight inflation, signalling tight policy may persist longer than previously anticipated. Higher interest rates slow economic growth, which curbs oil demand.

Separately on Monday, rating agency Moody39;s said that a U.S. government shutdown would harm the country39;s credit, a warning coming one month after Fitch downgraded the U.S. by one notch on the back of a debt ceiling crisis.

China39;s property woes have also weighed on sentiment, CMC39;s Teng added, with China Evergrande39;s announcement on Monday evening that it had missed a bond coupon payment driving renewed investor pessimism on the sector, which had long been a major economic growth driver.

While supply remains tight as Russia and Saudi Arabia have extended production cuts to the end of…