Oil prices extend losses but European gas highest since March

Major stock markets mostly rose on bets that the Federal Reserve would not lift borrowing costs by 75 basis points for a third straight time next month after decades-high inflation eased in the United States.

Both main crude contracts dropped, having lost about three percent Monday, as demand expectations decline in light of a string of soft economic indicators in major economies, notably China.

Signs that Iran is moving towards a nuclear deal added to the downward pressure on prices, with an agreement seen as allowing the country to restart oil sales into the world market.

Analysts said Tehran could provide 2.5 million barrels a day, giving a much-needed shot in the arm to supplies, which have been hammered by sanctions on Russia in response to its invasion of Ukraine.

Libya has also boosted production, helping prices drop to six-month lows and wiping out the gains seen after the Ukraine war started.

The European Union on Tuesday it was studying Iran's response to a "final" draft agreement on reviving a 2015 nuclear accord with major powers it presented at talks in Vienna.

In Europe Tuesday, the natural gas reference price Dutch TTF rallied 4.7 percent to 230.50 euros per megawatt hour -- the highest points since the start of March, or not long after Russia's invasion of Ukraine.