Oil prices slump as stockpiles and rate hikes stoke demand fears

Oil prices fell by more than $5 on Thursday after higher U.S. gasoline stockpiles stoked demand worries and returning energy supply from Libya and Russia eased supply concerns.

Brent crude futures lost $5.13, or 4.8%, to $101.79 a barrel by 1039 GMT after slipping 0.4% in the previous session. U.S. West Texas Intermediate crude futures were down $5.05, or 5.06%, at $94.83 after a 1.9% drop on Wednesday.

Oil futures trading volumes have been thin and prices volatile as traders have to square weaker energy demand with tighter supply resulting from the loss of Russian barrels.

European stocks, which often move in tandem with oil prices, also dipped ahead of the rate decision.

U.S. gasoline inventories rose by 3.5 million barrels last week, government data showed on Wednesday, far exceeding analyst forecasts.

Libya's National Oil Corp (NOC) on Wednesday said that crude production had resumed at several oilfields after the lifting of force majeure on oil exports last week.