Oil closes 2% lower, Brent below $85

Oil closed lower today, Jan. 30, as investors awaited the outlook for demand and as monetary policy continued to tighten around the world.

The Federal Reserve's decision on monetary policy is due on Feb. 1, with trader ready to assess the monetary tightening cycle and its impact on the US economy.

The decline in oil prices came despite the continued optimism about the recovery of Chinese demand, as Sinopec reported that gasoline sales in the country increased 20% during the week-long Lunar New Year holiday.

Brent crude futures for March delivery fell 2%, or $1.76, to close at $84.90 a barrel.

WTI crude for March delivery dropped 2.2%, or $1.78, to reach $77.90 per barrel.