Oil prices slumped on Thursday, dragged down by another record build-up in U.S. crude inventories and the U.S. Federal Reserve’s projections that the world’s biggest economy would shrink 6.5% this year.
Brent crude futures fell 3.4%, or $1.42, to $40.31 a barrel by 06:00 GMT, erasing Wednesday’s gains. Earlier in the session, Brent was down as much as $1.53, or 3.7%.
U.S. West Texas Intermediate (WTI) crude dropped 4%, or $1.60, to $38 a barrel, after being down earlier as much as $1.69, or 4.3%.