Volatility in Brent and West Texas Intermediate (WTI) was at its highest in more than a year and both entered technically oversold territory on Wednesday.
On Tuesday, both benchmarks had shed more than 4% to three-month lows, pressured by fears that the collapse of Silicon Valley Bank (SVB) last week and other U.S. bank failures could spark a financial crisis that would weigh on fuel demand.
Brent crude fell $5.03, or 6.5%, to $71.98 a barrel by 1634 GMT Wednesday.
U.S. WTI was down $4.76, or 6.6%, at $66.58, breaking through technical levels of $70 and $68 and extending the sell off.
Both benchmarks hit their lowest since December 2021 and have fallen for three straight days.
Adding to the bearishness in the market, U.S. crude stockpiles rose by 1.6 million barrels last week, government data showed, more than analysts' expectations in a Reuters poll for a 1.2 million-barrel rise.
Adding to the bearishness in the market, U.S. crude stockpiles rose by 1.6 million barrels last week, government data showed, more than analysts' expectations in a Reuters poll for a 1.2 million-barrel rise.
The U.S. dollar also strengthened against a basket of currencies, making it more expensive for holders of those currencies to purchase crude.
