Ana sayfa » Oil slumps as banking turmoil continues to drag market confidence down

Oil slumps as banking turmoil continues to drag market confidence down

UBS says they will increase market liquidity and support the banking system


Oil fell on Tuesday as more than a week of banking turmoil continued to weigh on market confidence.

Brent crude futures for May delivery fell 71 cents, or 1%, to trade at $73.08 a barrel at 0514 GMT. West Texas Intermediate (WTI) crude futures fell 74 cents, or 1.1%, to $66.90 a barrel.

In the previous session, both Brent and WTI fell about $3 a barrel before settling higher. He gave a lifeline to UBS Credit Suisse and major central banks, saying they would increase market liquidity and support the banking system.

The April WTI contract expires on Tuesday. The May contract, currently the most active, fell 64 cents, or 0.9%, to $67.18 a barrel.

Oil prices mainly depend on the effects on investor confidence at the macro level. If the banking crisis does not spread further, market sentiment may stabilize and oil prices may have a chance to recover.

Another impact will be the Federal Reserve’s decision on whether and by how much to raise interest rates after wrapping up a two-day meeting on Wednesday.

Since the banking turmoil began this month so far, the market forecast for the most likely size of the next Fed move has dropped from 50 basis points to 25 basis points.

G7 officials meanwhile said it is unlikely that Russian oil will make a planned review of the $60-per-barrel ceiling price.

OPEC+, which includes other OPEC allies, including Russia, will meet on April 3. The group agreed in October to reduce its daily oil production target by 2 million barrels by the end of 2023.

US crude exports to Europe have averaged a record 2.1 million barrels per day so far this month, driven by a drop in the price of WTI and weak oil demand from US refineries, according to Brent.

A preliminary survey showed that crude oil and product inventories in the U.S. were estimated to have fallen last week.