Oil Prices Extend Losses

Oil prices extended losses on Wednesday after plunging 5% in the previous session, as investors fretted about the health of the US economy ahead of an expected Federal Reserve interest rate hike later in the day.
Brent futures fell $1.07, or 1.4%, to $74.25 a barrel, while West Texas Intermediate crude fell $1.15, or 1.6%, to $70.51, Reuters reported.
Both benchmarks closed at their lowest since late March in the previous session, when they also recorded their biggest one-day percentage declines since early January.
"The Federal Reserve is expected to deliver another quarter-point increase later today as part of its long-running battle against inflation," PVM Oil analyst Stephen Brennock said.
He added that concerns about the health of the US. banking sector and downbeat US jobs data "did nothing to dispel fears that the US economy is barrelling towards a shallow recession".
The Fed is expected to hike interest rates by an additional 25 basis points on Wednesday to combat inflation, while the European Central Bank is also expected to raise rates at its regular policy meeting on Thursday.
More hikes could slow economic growth and hit energy demand.
Regulators seized First Republic Bank (FRC.N) and sold most of its assets to JPMorgan Chase & Co (JPM.N) on Monday.