Crude oil prices hit by record US crude inventories, bearish Fed

LONDON: Oil prices fell on Thursday, hit by another record build-up in US crude inventories and the US Federal Reserve’s projections that the world’s biggest economy would shrink 6.5 per cent this year.

Brent crude futures erased Wednesday’s gains, falling 3.6 per cent, or $1.50, to $40.23 a barrel by 0802 GMT. US West Texas Intermediate (WTI) crude dropped 4 per cent, or $1.57, to $38.03 a barrel.

With demand risks back at the forefront, both benchmarks are set for their worst daily drop in two weeks.