Oil prices fell this Monday on concern that risks in the global banking sector and a possible rise in interest rates in the United States could trigger a recession that reduces demand for fuel.
Oil prices fell this Monday to their lowest level in 15 months due to the worry that the risks in the global banking sector and a possible rise in interest rates in the United States could trigger a recession that reduces the demand for fuel.
In volatile trading, Brent crude futures for May delivery fell 2.8% to $70.90 a barrel. US West Texas Intermediate crude for April is down 2.8% at $64.86 before expiration on Tuesday. WTI futures for May delivery were down 2.8% at $65.06 a barrel.
Brent and WTI earlier hit lows last seen in December 2021, with WTI sinking below $65 a barrel. Both benchmarks lost more than 10% of their value last week as the banking crisis worsened.
Oil’s slide comes despite a historic deal to buy Credit Suisse by UBS, the biggest Swiss bank, in a bid to bail out the country’s second-biggest bank. However, bank stocks and bonds continued to tumble on Monday, in a sign that investor confidence remains fragile.
After the deal was announced, the US Federal Reserve, the European Central Bank and other major central banks pledged to increase market liquidity and support other banks.
On April 3, a ministerial committee of OPEC and its allies, including Russia, a group known as OPEC+, will meet. The grouping agreed in October to cut oil production targets by 2 million barrels a day until the end of 2023.
Source: Ambito
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