Oil prices fall more than 2% and amplify losses

Adding to the losses from the previous session on Thursday, oil prices fell more than 2% as investors worried that aggressive rate hikes in the US could trigger a recession and dent fuel demand.

US West Texas Intermediate (WTI) crude futures fell 2.9% to $103 a barrel. Brent oil futures fell 2.5% to USD 108 a barrel.

Both benchmarks fell around 3% on Wednesday, reaching their lowest levels since mid-May.

oil well

An oil rig drills a well near Midland, Texas. (REUTERS/Ernest Scheyder/Reuters Photos)

Investors remain concerned that central banks could push the global economy into recession with interest rate hikes.

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The Federal Reserve is not trying to create a recession to stop inflation, but is fully committed to bringing prices under control even if doing so jeopardizes an economic downturn, US central bank chief Jerome Powell said Wednesday.

BIDEN’S ENERGY SEC. TIPS FOR A DRASTIC MEASURE TO ENTER THE GAS CRISIS

Jerome Powell

Federal Reserve Chairman Jerome Powell speaks to the Senate Committee on Banking, Housing and Urban Affairs as he presents the monetary policy report to the committee on Capitol Hill, Wednesday, June 22, 2022, in Washington. (AP Photo/Manuel Balce Ceneta / AP Newsroom)

POWELL PROMISES THE FED ‘HIGHLY COMMITTED’ TO FIGHTING INFLATION WITH MORE RATE RAISES

President Biden has called on Congress to approve a three-month suspension of the federal gasoline tax to help fight record prices at the pump.

The average price for a gallons 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 dropped to $4,955, according to AAA. The price fell to $4,968 on Tuesday.

Reuters contributed to this report.

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