Oil prices increased losses from the previous session on Thursday, falling more than 2% as investors worried that aggressive US interest rate hikes could trigger a recession and reduce fuel demand.
US West Texas Intermediate (WTI) crude oil futures fell 2.9%, to $ 103 per barrel. Brent oil futures fell 2.5 percent to $ 108 a barrel.
Both benchmarks fell around 3% on Wednesday to reach their lowest levels since mid-May.
Investors are still worried that central banks may push the world economy into recession with interest rate hikes.
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The Federal Reserve is not trying to construct a recession to stop inflation, but is fully committed to bringing prices under control even if it risks an economic downturn, US Federal Reserve Chairman Jerome Powell said on Wednesday.
BIDENS ENERGY SEC. TIPS ON DRASTIC MOVEMENT TO TACKLE THE GAS CRISIS
POWELL PROMISES FED IS ‘STRONGLY COMMITTED’ TO FIGHT INFLATION WITH SEVERAL INTEREST RATE INCREASES
President Biden has called on Congress to pass a three-month suspension of the federal gasoline tax in order to fight record prices at the pump.
The average price for one liters of gasoline fell again on Wednesday, staying below the $ 5 threshold for the fifth day in a row, according to AAA.
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The price of a gallon of gasoline fell to $ 4,955, according to AAA. The price on Tuesday fell to $ 4,968.
Reuters contributed to this report.