Oil prices fell 4% on Wednesday, extending steep losses from the previous session after the U.S. Federal Reserve raised interest rates and as investors fretted about the economy.
Brent futures settled $2.99 lower, or 4%, to $72.33 a barrel, the global benchmark’s lowest close since December 2021. Brent hit a session low of $71.70 a barrel, its lowest since March 20.
U.S. West Texas Intermediate crude (WTI) fell $3.06, or 4.3%, to $68.60. WTI’s session low was $67.95 a barrel, lowest since March 24.
A day earlier, both benchmarks fell 5%, their biggest daily percentage declines since early January.
On Wednesday afternoon, the Fed raised interest rates by a quarter of a percentage point, pressuring oil prices as traders worried that slower economic growth could hit energy demand.
But the Fed also signaled it may pause further increases, giving officials time to assess fallout from recent bank failures, wait for resolution of a political standoff over the U.S. debt ceiling and monitor inflation.
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