UK consumer prices rose 9.1% in May, the fastest such increase since 1989, matching estimates, and up from 9.0% in April. 

Core prices, excluding food and energy, rose 5.9%, missing estimates of 6.0%, and down from 6.2% in April.

Oil futures declined over 3% in Asian trade off March 9 highs, marking May 19 lows as the dollar index bounced off June 10 lows for another session, as markets price in economic slowdown, which will impact oil demand worldwide. 

As of 05:51 GMT, US crude futures due in July tumbled 3.82% to $105.51 a barrel, while Brent futures due in August slumped 3.28% to $110.93 a barrel, as the dollar index rose 0.26% to 104.71.

Reports indicated US President Joe Biden is considering a suspension of the federal tax on gasoline, estimated at 18.4 cents per gallon.

Now investors await Jerome Powell's testimony ahead of Congress later today.

Libya's energy minister Muhammad Ouna said total Libyan production hit 700 thousand bpd, up from just 150 thousand bpd last week amid continued struggles with rebels.

Otherwise, OPEC General Secretary Muhammed Barkindo asserted the organization is trying to maintain supplies, and opened the door for extending the OPEC + deal with Russia to beyond this year, depending on market conditions.

On the Ukrainian crisis, the Kremlin said the negotiations with Ukraine aren't going very well, especially after aggressive remarks by the Ukrainian government recently on the Crimean Bridge.

Ukrainian government asserted a goal to take back the Crimean Bridge once it acquire weaponry from the US and Europe.

Baker Hughes data showed US oil rigs rose by 4 rigs to 584 rigs last week, the second such increase in a row to March 2020 highs.

Oil rigs rose in May for the 22nd month in row, the longest such streak ever, while US output rose 100 thousand bpd last week to a total of 12 million bpd, the highest since April 2020.

US stock indices rose on Tuesday despite ongoing warnings from potential recession this year.

Goldman Sachs analysts warned the US economy will probably go in recession soon.

However US President Joe Biden said a recession isn't inevitable this year.

Dow Jones rose 1.6% to 30,382 as of 14:14 GMT, while S&P 500 rose 2.3% to 3,763, as NASDAQ rose 2.9% to 11,111. 

Oil prices rose in European trade off five-week lows for another session as fuel demand increases in the summer in major consumers. 

Prices are also supported by dollar's decline against major rivals, underpinning demand on commodities and dollar-denominated metals.

Prices

US crude prices rose 1.9% to $110.77 a barrel, while Brent rose 1.8% to $116.21 a barrel.

US crude rose 0.25% on Monday, as Brent added 0.9% off five-week lows at 111.58. 

Demand

Most energy experts expect fuel demand to improve as China reopens major cities while summer vacations spread worldwide.

The Dollar

The dollar index fell 0.5% on Tuesday for another session on profit-taking off 20-year highs against major rivals. 

The dollar lost ground amid doubts the Fed might ever hike rates by 75 basis points once more this year.

Iranian Supplies

A United Nations report indicated Iran is enriching Uranium to for use in specialized nuclear cents to generate energy.

Such steps imply that Iranian oil supplies are unlikely to return to the global market any time soon as tensions persist with the US.