US crude dipped to nearly $106 a barrel due to rising concerns over increasing oil prices, which may hamper demand.

US crude fell by 40¢ to $106.72 a barrel, while ICE Brent crude for June fell 32¢ to $121.29 a barrel, reports Reuters.

International Energy Agency executive director Nobuo Tanaka said that if oil prices remained around current levels, they could trigger a recession similar to 2008, when oil prices hit a record of nearly $150 a barrel before collapsing to less than $40.