Oil prices fell about 5 percent on Thursday, reaching their lowest in more than a year, fears over oversupply and a projection of energy demand as rising rates of US interest rates overturned stock markets.
Brent crude futures closed down $ 2.89, or 5.05 percent, to $ 54.35 a barrel. US oil futures (WTI) fell $ 2.29, or 4.75 percent, to $ 45.88 a barrel.
Brent touched a session low of $ 54.28, its lowest level since mid-September 2017, while the WTI sank to $ 45.67, the lowest since late August last year.
Global stock indexes fell after the Federal Reserve raised US interest rates on Wednesday and retained much of its guideline for further increases over the next two years, ending investors’ hopes of a more “dovish” for monetary policy.
The US stock market extended losses on Thursday, pushing up oil prices.
“Any further weakening in risk appetite, as the decline in stocks underscores, can easily lead to WTI speculative outflows from the remaining long positions,” said Jim Ritterbusch, president of Ritterbusch and Associates, in a note.