West New York Texas Intermediate (WTI) crude futures fell more than 5%, closing at their lowest level in more than a year on Wednesday (March 15), as markets were weighed down by concerns about the cryptocurrency crisis Credit Suisse Bank Finance
- The WTI crude oil contract will be introduced in April. It fell $3.72, or 5.2%, to settle at $67.61 a barrel.
- The Brent crude oil contract (BRENT) will be introduced in May. Plunged $3.76, or 4.9%, to close at $73.69/barrel.
WTI and Brent crude closed at their lowest levels since December. 2021 and fell for the 3rd day in a row, with the latest market drag factor It stems from concerns about the financial condition of Credit Suisse. which is the second largest bank in Switzerland. After the Saudi National Bank (SNB), Credit Suisse’s largest shareholder, announced that the SNB was unable to increase its financial support to Credit Suisse as it would allow the SNB to hold a stake in Credit Suisse in Switzerland exceeding 10% , which would break banking rules.
The situation with Credit Suisse adds to concerns about the closure of Silicon Valley Bank and Signature Bank by the US government.
Oil markets were also weighed down by a report from the US Energy Information Administration (EIA), which said US crude inventories rose by 1.6 million barrels last week. The increase was only 100,000 barrels more than analysts had expected.
In addition, the strength of the dollar affected the oil market. By causing the crude oil contract, which is priced in dollars. More expensive and less attractive to investors holding other currencies
However, crude futures found support during the day. As the Organization of the Petroleum Exporting Countries (OPEC) raised its forecast for oil demand growth in China in 2023 after China lifted its no covid policy. by OPEC expected China’s demand for oil is expected to grow 710,000 bpd in 2023, up from last month’s forecast of 590,000 bpd.
By InfoQuest News Agency (16 Mar. ’23)
Tags: WTI oil , crude oil , oil price
