Oil prices remained at multi-year lows in Asia Thursday on the back of an interest rate hike from the U.S. Federal Reserve and higher crude oil stockpile data from the U.S. Energy Information Administration, underscoring vulnerability in the energy sector after OPEC stood back on cutting production.
EIA data released Wednesday ahead of the Fed's rate decision showed crude inventories rose 4.8 million barrels last week—against expectations of a 1.4 million barrel drawdown in a Reuters poll.
The interest rate hike battered prices further, as the move is seen to be supportive to the U.S. dollar that is used to price trade in most major commodities.
A warm winter in the world's largest oil consumer U.S. is also a damper for the beleaguered energy sector.
U.S. WTI crude oil futures settled nearly 5 percent lower at $35.52 a barrel and are trading at $35.38 a barrel in Asia.
Brent crude oil futures settled over percent lower at $37.19 a barrel after hitting $37.11 a barrel, near a 11-year-low. Brent oil is now trading around $37 a barrel.