Crude oil futures ended deeply in red on Thursday as interest rate hikes and inflation concerns triggered growth worries and raised concerns about the outlook for fuel demand. Following Fed Chair Jerome Powell's comments that signaled more interest rate hikes by the U.S. Central Bank, the Bank of England announced a larger-than-expected 50-basis point hike in rates, and the Swiss National Bank raised its rate by 25 basis points. Oil prices fell despite data showing a drop in crude inventories. Data released by Energy Information Administration (EIA) showed crude inventories in the U.S. fell by 3.8 million barrels last week, as against forecasts for a rise of 300,000 barrels.
Benchmark crude oil futures for July delivery fell $3.02 or about 4.16 percent to settle at $69.51 a barrel on the New York Mercantile Exchange. Brent crude for August delivery dropped $2.98 or 3.86 percent to settle at $74.14 a barrel on London's Intercontinental Exchange.