Oil stretched its losses on Wednesday post dipping by 5% in the earlier session, Investors were concerned about the status of the US economy before the uncover of the Federal Reserve's projected interest rate hike during the day.

Brent crude slipped by $1.07, to $74.25 per barrel meanwhile US WTI dropped by $1.07 to $74.25 per barrel.

In the previous session, both benchmarks finished at their lowest levels since late March, while also recording their largest one-day percentage drops since early January.

Energy prices are also under pressure after data from China released over the weekend indicated that factory activity in April declined sharply. China is the world's largest energy consumer and crude oil buyer.

The reopening of China's economy will be critical for Asia, according to the International Monetary Fund, which boosted its growth projection for the region on Tuesday. However, it warned of the risks posed by persistent inflation and global market volatility caused by problems in the Western banking sector.