Oil prices are falling by more than 2%, prolonging losses

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.

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

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.

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Jerome Powell

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

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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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