The decline in crude oil prices continued on Thursday after also being hit hard by the decision of the FOMC policy meeting to raise interest rates higher.
The Federal Reserve (Fed) raised interest rates by 75 basis points at its latest policy meeting, and also signaled more upcoming rate hikes to tackle inflation.
This has further heightened market concerns over the possibility of a recession in the major economies, especially after the Fed also lowered its growth forecast for the year.
The growth forecast was lowered significantly from 2.8% estimated in March to 1.7%. Meanwhile, inflation is not expected to subside and the unemployment rate is estimated to increase.
Brent oil futures traded lower at around $ 119 a barrel, while US WTI traded at $ 116 a barrel.
In addition, prices were also affected by Energy Information Administration (EIA) data which reported an unexpected surge in US oil production which hit its highest level since April 2020.
The International Energy Agency (IEA) warned of weak consumption and rising global inventories amid worsening growth and inflation prospects.
