Oil prices fell on Thursday to extend losses from the previous session amid fears that more U.S. interest-rate hikes could curb energy demand in the world's top consumer.
Fears of rising interest rates and recession worries weighed on prices, offsetting bullish data coming out of China.
Benchmark Brent crude futures fell 1.9 percent to $81.55 a barrel, while WTI crude futures were down over 2 percent at $77.62.
The dollar held onto recent gains in European trade after some Federal Reserve officials called for further interest-rate hikes.
With microdata pointing to a resilient U.S. economy, the Federal Reserve is expected to deliver a 25-basis point rate increase in May.
Hawkish comments from European and Fed officials raised concerns that global central banks may have more work to do to fight inflation.
On Wednesday, investors were jolted by news that U.K. inflation remained in double digits in March at 10.1 percent.
