Oil prices have dipped by five percent to a three-week low due to a drop in American gasoline futures.
Investors were worried that the interest rate hikes from major central banks could retard the global economy, which will decrease the energy demand.
Brent futures decreased by 4.9 percent, falling by $5.85 to $113.96 a barrel, and crude oil fell by $6.66 (5.7 percent) to $110.93.
American gasoline futures slid about six percent, which worried analysts that high pump prices will reduce the demand.
The price of diesel at the pump hit a record high of $5.798 per gallon on 17 June and the price of gasoline hit its highest record of $5.016 earlier in the week.
The further fall in international fuel prices might relax the prices in Pakistan which have significantly increased with the government’s decision to remove the subsidies on fuel.