Brent oil futures, a reference for Argentina, pierces US$80 amid general uncertainty after the bankruptcy of Silicon Valley Bank.
Oil prices collapse this Monday along with the stock markets, since the bankruptcy of the Silicon Valley Bank It raises fears of a new financial crisis, although the recovery in Chinese demand provided some support.
Learn more.– Financial crisis LIVE: the minute by minute of the fall of Silicon Valley Bank, other banks and markets
Brent oil futures, a reference for Argentina, lost 4.42% to u$s79.05 and those of West Texas Intermediate (WTI) lost 4.88% to u$s72.94. Fears of contagion from the Silicon Valley Bank failure sparked a sell-off of US assets late last week, while state regulators shuttered New York-based Signature Bank on Sunday.
Market sentiment was already fragile, as concerns about further monetary tightening by the Federal Reserve have been exacerbated by high US crude inventories, ANZ Bank analysts said in a note on Monday morning.
“It’s like the battle between rising activity data in the East and macroeconomic malaise in the West,” said Stephen Innes of SPI Asset Management, commenting on mixed sentiments in the crude market.
In recent days, the weakness of the dollar, which makes oil cheaper for holders of other currencies, has lent some support to prices.
Source: Ambito
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