Oil Prices Drop on Demand Worries Despite Middle East Tensions

• Oil prices fell due to concerns that sticky US inflation and higher interest rates would limit fuel demand growth • Prices dropped despite geopolitical tensions in the Middle East that typically support oil • Investors are watching to see impact on oil demand from China returning from Lunar New Year holiday • US markets expected to see lower trading activity with Presidents' Day holiday • OPEC has significant spare capacity to cover most potential supply disruptions