Oil prices rebounded this Monday in a volatile session, after having fallen to minimums of more than 15 months Given the concern that the risks in the world banking sector trigger a recession that reduces demand for fuel.
Brent crude futures rose 3 cents to $73.00 a barrel, while U.S. West Texas Intermediate futures were down 4 cents at $66.70. on the eve of the expiration of the contract. The most traded May futures were up 6 cents at $66.99 a barrel.
Brent and WTI had fallen earlier in the session around $3 per barrel to their lowest since December 2021, with WTI plunging below $65 at one point.
Last week both contracts plunged more than 12% as the banking crisis worsened.
Oil’s early slide came despite a landmark deal whereby UBS, Switzerland’s largest bank, will buy Credit Suisse, in an attempt to bail out the country’s second-biggest oil company.
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.
“There’s a lot of fear-based movement (in oil prices),” said Phil Flynn, an analyst at Price Futures Group. “We’re not moving at all on supply and demand fundamentals, just banking concerns.”
Source: Ambito
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