Bloomberg: amid banking turmoil recorded a record drop in oil
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Oil suffered the biggest losses in a week this year. The fall in raw materials is associated with significant shocks on world markets in the banking sector, writes Bloomberg.
March 11 Silicon Valley Bank (SVB), the 16th largest US bank was recognized bankrupt. SVB became the second largest bankrupt in US history after Washington Mutual Bank. The collapse of the credit institution led to a fall in stock prices in Europe and the closure of another bank in the United States.
Today, March 17, futures for West Texas Intermediate crude fell below $69 per barrel. At the end of the week, the fall was about 10%. Now investors are waiting for a possible reaction to this collapse from the OPEC + cartel. The agency notes that OPEC+ heads from Russia and Saudi Arabia have already met in Riyadh to discuss the group’s efforts to promote market balance stability.
However, industry consultant FGE predicts that OPEC+ will not take any action until the price of Brent oil falls below $70 a barrel, and for an extended period of time.
International Energy Agency predictsthat the oil market in the first half of 2023 will be in surplus, despite the reduction in oil production in Russia in March. European Union expectsthat the average price of Brent crude this year will be $84.8 per barrel. March 15 Brent oil prices went down below $72 per barrel for the first time since December 22, 2021.
Read more about the oil market in the material “Kommersant FM” “Brent is losing ground”.
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