Sharjah24 – AFP: Oil prices fell Wednesday on worries over weakening demand in the slowing global economy as Federal Reserve Chief Jerome Powell acknowledged interest rate hikes could lead to a recession.

US stocks had a choppy session, pushing into positive territory for a time after Powell reiterated the need to counter soaring inflation, but cautioned that a recession was "certainly a possibility" amid the ongoing interest rate hikes.

But New York shares retreated again at the end of the day, though they ended with smaller losses than major European and Asian bourses.

The S&P 500 finished just 0.1 percent lower, meaning it maintained most of the gains from Tuesday's heady session.

Oil prices were feeling the heat from recessionary fears, with both main contracts tanking more than six percent at one point.

US gasoline prices are still very high, but a bit off their record, with the national average easing to $4.955 a gallon, according to the American Automobile Association, about six cents below the level a week ago and below the record of $5.016 hit June 14.