Crude oil prices fell sharply on Thursday, extending losses from the previous session amid rising concerns about outlook for energy demand.
West Texas Intermediate Crude oil futures for May ended down $1.87 or about 2.4% at $77.29 a barrel on the expiration day, the lowest level since March 31.
Brent crude futures were down $2.06 or 2.48% at $81.06 a barrel a little while ago.
Hawkish comments from Fed officials and the European Central Bank have raised concerns that the central banks are not down with interest rate hikes as yet, and more tightening is very likely in coming months to fight inflation.
Traders are concerned that further U.S. interest rate hikes could hurt growth and push the economy into a recession and result in a fall in demand.
Signs of slowing labor market, an unexpected jump in gasoline inventories in the U.S. last week, and reports saying oil loading from Russia's Western ports in April is likely to rise to near 4-year high, weighed on oil prices.
Data from the Labor Department today showed a bigger than expected increase in initial jobless claims in the U.S. last week.
The data said jobless claims crept up to 245,000 in the week ended April 14, an increase of 5,000 from the previous week's unrevised level of 240,000.
Meanwhile, manufacturing activity in the Philadelphia area unexpectedly contracted at an accelerated rate in the month of April, said a report from the Federal Reserve Bank of Philadelphia.
