Oil prices drifted lower on Thursday amid concerns the interest rate hikes by several central banks could slow down economic growth and impact the outlook for energy demand.
Federal Reserve Chair Jerome Powell highlighting banking sector credit risks, and larger than expected increase in U.S. crude inventories weighed as well on oil prices.
Optimism about higher demand from China helped limit oil's downside.
West Texas Intermediate crude oil futures for May ended lower by $0.94 or about 1.3% at $69.96 a barrel.
Brent crude futures were down $1.11 or 1.44% at $75.58 a barrel a little while ago.
"Many energy traders remain unconvinced that the demand will be improving enough to bring down stockpiles," says Edward Moya, Senior Market Analyst at OANDA.
"The key takeaway from the FOMC meeting for energy traders is that the Fed is probably going to send this economy into a recession. China's reopening story remains subdued and that is keeping oil grounded around the low $70s," he adds.
