Oil prices fall more than 2% extending losses

Oil prices fall more than 2% extending losses

Oil prices added to losses from the previous session on Thursday, falling more than 2% as investors feared that aggressive interest rate hikes in the United States could trigger a recession and hit fuel demand. .

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

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

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

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

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The Federal Reserve is not trying to engineer a recession to stop inflation, but it is fully committed to reining in prices even if doing so risks an economic downturn, US central bank chief Jerome Powell said on Wednesday. .

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Jerome Powell

Federal Reserve Chairman Jerome Powell speaks before 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)

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President Biden has asked Congress to pass a three-month suspension of the federal gas tax to help combat record prices at gas stations.

The average price of a gallon 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. Tuesday’s price fell to $4,968.

Reuters contributed to this report.

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