Oil prices dipped further on Wednesday, post plunging over 3% hitting the lowest level in six months in the earlier session due to demand worries and oversupply.

Brent crude futures slumped by 0.45% to $72.91 per barrel meanwhile US WTI slipped 0.42% to $68.32 per barrel.

Stronger-than-expected U.S. inflation data for November supported the theory that Fed was unlikely to lower interest rates early in the new year, which would have a negative impact on spending, which caused the market to falter in overnight trading.

According to ANZ analysts, the weekly average of Russian oil shipments surged to its highest level since July, exacerbating worries about an excess supply and casting more doubt on the recent output reduction deal reached by OPEC+.

Rates will likely remain unchanged, as forecast by the Federal Reserve. Investors, however, will pay close attention to what Fed officials have to say about the state of the economy and interest rates in the upcoming quarters.