Oil prices continued to slip lower on Friday after US Energy Secretary Jennifer Granholm told lawmakers that refilling the country’s Strategic Petroleum Reserve may take several years.
Concerns about the health of the banking sector on both sides of the Atlantic also put pressure on oil prices.
Brent crude had fallen 2.5% at US$68.25 per barrel at mid-morning on Friday in New York.
This weighed on oil producers such as Shell, which was down 3.3% at US$54.13.
BP fell 2.7% at US$35.51 and Exxon Mobile shed 1.6% at US$101.73.
CityIndex and FOREX.com market analyst Fawad Razaqzada said the general feeling is that global economic activity will slow down as a result of higher interest rates, which should hurt demand for oil.
"The fact that WTI has also held below the old support level of $70 is significant in that it will encourage technical traders to maintain a bearish view on oil prices," he said.
-- Updated with analyst comment --
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