Riyadh: In response to concerns over demand sparked by a higher-than-expected interest rate hike in Britain and warnings about impending rate hikes in the US, oil prices fell for a second straight session on Friday and were on track for a weekly decline of more than 3%, according to Reuters.

Brent futures decreased by 51 cents, or 0.4 percent, to $73.76 per barrel at 3:40 a.m. Saudi time, while US West Texas Intermediate crude futures declined by 42 cents, or 0.6 percent, to $69.09 per barrel. 

According to Tina Teng, an analyst at CMC Markets, "recession fears mount again following central banks' rate hikes and a hawkish Fed," and she added that a stronger dollar was also having an impact on prices.

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A rise in the dollar's value, which is up 0.3% this week, can reduce oil demand by increasing the cost of fuel for owners of other currencies.

Following the Bank of England's half-point interest rate increase, which sparked concerns that an economic slowdown would reduce fuel demand, both crude benchmarks had fallen by about $3 in the previous session.

In order to get a sense of manufacturing activity and demand trends, the market is now anticipating the release of purchasing managers' indexes from around the globe on Friday.

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According to the Energy Information Administration on Thursday, strong export demand and low imports helped to unexpectedly reduce crude stockpiles in the US over the past week. However, inventories of petrol and distillates increased.

As policymakers move closer to ending their historic round of tightening monetary policy, Federal Reserve Chair Jerome Powell stated that the central bank would move interest rates from here at a "careful pace."

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Higher interest rates make borrowing more expensive for consumers and businesses, which could impede economic growth and lower demand for oil. The outlook for fuel demand for the remainder of the year is clouded by worries about increases by significant central banks.

According to Edward Moya, an analyst at OANDA, "Energy traders are concerned that the Fed and friends might cripple economic growth in the second half of the year."