Oil prices suffered significant losses at the mid-week trading session in London.
Oil prices drifted lower after digesting a surprising build in U.S. crude oil inventories that re-ignited fuel demand anxiety.
Both major benchmarks traded above the $50 mark and are trading at their highest levels since February 2020.
Recent data retrieved from the American Petroleum Institute (API) reveals a decline of 4.785 million barrels for the week ending December 25.
At the time of writing this report, Brent oil futures were down by 1.06% to $49.30 thereby dropping below the $50 mark.
Oil prices slid downwards at the mid-week trading session due to fears for soft fuel demand.
Oil futures fell precipitously on Wednesday amid mounting fears of oil demand recovery.
Both oil benchmarks dropped below the $40.
Brent crude prices dropped 0.51% to trade at $40.58 a barrel, after rising 2.5% on Wednesday.
Crude oil prices continue to climb up amid signs of gradual demand improvement.