Oil Slides as Interest Rate Expectations Eclipse Chinese Data

A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, on May 21, 2018. Francis Mascarenhas/Reuters

LONDON—Oil prices dropped sharply on Wednesday, sliding by 2 percent as potential U.S. interest rate hikes that could slow growth and curb oil consumption outweighed strong Chinese economic data and falling U.S. inventories.

Brent crude futures shed $1.70 to $83.07 a barrel by 0929 GMT while West Texas Intermediate U.S. crude fell by $1.64 to $79.22.