Oil declines 2% as investors assess recession risks

Oil prices plunged more than 2% on Thursday as investors assess the risks of recession and how fuel demand will be affected by rising interest rates and tight supplies.

U.S. West Texas Intermediate (WTI) declined by $2.6, or 2.7%, to $103.46 per barrel.

Brent Crude futures were down $2.5, or 2.3%, at $109.22 per barrel.

Both benchmarks dipped 3% on Wednesday and around their lowest since mid-May.

Investors continue to assess how worried they need to be about central banks potentially pushing the world economy into recession as they attempt to curb inflation with interest rate hikes.

U.S. Federal Reserve chief Jerome Powell on Wednesday said the central bank was not trying to manage a recession to curb inflation but was fully committed to bringing prices under control even if doing so carried the risk of an economic downturn.