[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Oil prices fell dramatically on Monday, with Brent oil falling near $70 due to concerns about the worldwide impact of the American banking crisis.
Crude oil futures were lower in mid-morning Asian trade on March 20 due to hefty losses experienced by Brent markers following last week’s Credit Suisse collapse, which stoked concerns about broader global economic instability.
Brent crude is down $2.26, or 3.10 percent, to $70.71 per barrel at the time of filing, while US West Texas Intermediate (WTI) crude is down $2.14, or 3.21 percent, to $64.6 per barrel after markets started trading in the red on Monday.
Prior to today’s steep drop, leading energy analysts were cautious about how far oil prices may fall. Overall, global financial market sentiment remained cloudy, with pessimistic banking sector expectations painting a bleak image of the global economy.
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Credit Suisse announced on Sunday that it had merged with UBS. Following that, central banks in the United States and Europe took coordinated action to increase dollar liquidity and assuage market concerns about the financial crisis caused by the failures of Silicon Valley Bank and Signature Bank in the United States, including the $30 billion rescue of San Francisco-based First Republic Bank.
Besides these changes, crude oil futures continued to fall. According to sources, the market expects the Federal Reserve of the United States to become more active in its monetary policy. Interest rates are projected to rise further, according to international market experts today.
Meanwhile, in the first two months of 2023, Russia eclipsed Saudi Arabia as China’s largest oil supplier, as customers snatched up sanctioned Russian crude at deep discounts.
Following Moscow’s invasion of Ukraine, western sanctions and a price limitation on Russian crude have reduced the customer pool for Russian supplies, forcing it to trade at significant discounts to international benchmarks. This has performed exceedingly well in comparison to market forecasts, and the global banking crisis is not likely to have any impact on it.[/vc_column_text][/vc_column][/vc_row]
