Oil prices added losses from the previous session on Thursday, falling by more than 2% because investors are worried that an aggressive increase in US interest rates could cause a recession and reduce fuel demand.
West Texas Intermediate (VTI) futures fell 2.9 percent to $ 103 a barrel. Brent oil futures fell 2.5 percent to $ 108 a barrel.
Both benchmarks fell about 3% on Wednesday and reached their lowest levels since mid-May.
Investors remain worried that central banks could push the world economy into recession by raising interest rates.
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The Federal Reserve is not trying to produce a recession to stop inflation, but is fully committed to keeping prices under control even if it risks an economic downturn, US Central Bank chief Jerome Powell said on Wednesday.
BIDENOV ENERGI SEC. OVERVIEW OF DRASTIC NEEDS IN RESOLVING GAS CRISIS
POVELL PROMISES FED ‘VERY COMMITTED’ TO FIGHT AGAINST INFLATION MORE RATE INCREASE
President Biden has called on Congress to adopt a three-month suspension of the federal gas tax to help fight record prices at the gas station.
Average price for a gallon of gasoline slipped 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 dropped to $ 4,968 on Tuesday.
Reuters contributed to this report.
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