Oil prices continued their descent on Thursday amid concerns that a possible recession in the US could lower fuel demand.
International benchmark Brent crude was trading at $110.34 per barrel at 0630 GMT for a 1.25% decrease after closing the previous session at $111.74 a barrel.
American benchmark West Texas Intermediate (WTI) was at $104.62 per barrel at the same time for a 1.48% loss after the previous session closed at $106.19 a barrel.
Investors believe US rate hikes could stall economic recovery and negatively affect fuel demand in the country.
Fed Chair Jerome Powell tried to douse fears on Wednesday saying, 'the US Federal Reserve is not trying to trigger a recession to tame inflation but is fully committed to bringing down prices.'
Meanwhile, US President Joe Biden confirmed that he is considering temporarily removing federal tax on gasoline in a bid to lower fuel prices ahead of the summer travel peak.
American Petroleum Institute (API) announced its estimate of a 5.6 million-barrel increase in US crude oil inventories late Tuesday, relative to the market expectation of a decrease of 1.4 million barrels.
The US Energy Information Administration's weekly oil data has been delayed due to technical systems issues.
By Zeynep Beyza Kilic