The crude oil market also took a hit from Federal Reserve (Fed) Chairman Jerome Powell's hawkish statement by plunging lower.
Crude oil prices have shown a strong recovery since last week on the back of stronger Chinese economic data.
However, the recovery could not continue after Powell dropped a new 'bombshell' in the market that hinted at more interest rate hikes on the way.
In fact, investors also expect that the central bank will raise interest rates by 50 basis points at this month's policy meeting.
As a result, oil prices fell again and erased some of the gains recorded last week.
Both the Brent and WTI oil benchmarks of the United States each recorded the biggest daily drop in 2 months in the New York session yesterday.
In the Asian session, Brent crude oil futures traded little changed at around $83 a barrel after losing 3.8% in the previous session, while US WTI traded at $77 a barrel following a 4% fall.
