Oil prices fell 1.5% on Wednesday after the U.S. Federal Reserve projected more interest rate hikes this year, worrying markets about demand just hours after government data showed an unexpected, large build in U.S. crude oil stocks.
Brent crude futures settled $1.09, or 1.5%, lower at $73.20 a barrel, while U.S. West Texas Intermediate crude closed $1.15, or 1.7%, lower at $68.27.
"Markets fear that a higher interest rate environment is going to lower oil demand. The knee jerk reaction is pushing oil down," said Price Group analyst Phil Flynn.
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