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The international oil price, which once hovered over $120 per barrel, plunged nearly 7% overnight.
This is because fears of an economic recession have grown as countries around the world, including the United States, have tightened austerity measures.
Analysts also suggest that interest rates should be raised to 4% within the year to catch inflation in the US.
First news, Correspondent Yunsu Kim from Washington.
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The price of West Texas Intermediate crude for July delivery traded in New York fell 6.8% per barrel from the previous day.
It was the biggest one-day drop since March 31st.
The seven-week uptrend turned to a downtrend as it fell for five straight trading days this week.
London's August Brent crude also fell sharply.
The sharp rise in international oil prices, which had been soaring since Russia's invasion of Ukraine, has been dampened is analyzed in the aftermath of interest rate hikes by central banks, including the US Federal Reserve.
There is growing concern that aggressive austerity measures to catch the worst inflation in more than 40 years will dampen demand and lead to a recession.
Following a letter from US President Biden urging large oil companies to expand their supply, US President Joe Biden is also considering invoking the Defense Procurement Act to increase gasoline supply.
The key to inflation, the oil price, is to catch up somehow.
[Biden/US President: Several countries are working together to stabilize international oil prices, including the largest release of strategic oil reserves in history.]
Meanwhile, inside the Fed, the 'Giant Step', which raises interest rates by 0.75% at a time According to the Wall Street Journal, an analysis has come out that the interest rate will need to be raised to 4% within this year to catch inflation.