Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Oil hits lowest since 2021 on banking fears

    Oil hits lowest since 2021 on banking fears

    March 20, 2023
    Share
    Facebook Twitter LinkedIn WhatsApp
    *Oil prices

    London — Oil prices dropped to their lowest in 15 months on Monday, driven down by concern that risks in the global banking sector and a potential increase to U.S. interest rates could spark a recession that would sap fuel demand.

    In volatile trading, Brent crude futures for May fell 87 cents, or 1.2%, to $72.10 a barrel by 1211 GMT. The U.S. West Texas Intermediate crude contract for April was down 85 cents, or 1.3%, at $65.89 before its expiry on Tuesday.

    The more actively traded May futures were down 1.2% at $66.11 a barrel.

    Brent and WTI earlier fell by about $3, hitting lows last registered in December 2021, with WTI sinking below $65 a barrel. Both benchmarks shed more than 10% of their value last week as the banking crisis deepened.

    The slide in oil comes despite the historic deal for UBS, Switzerland’s largest bank, to buy Credit Suisse in an attempt to rescue the country’s second-biggest bank.

    However, banking stocks and bonds continued to plunge on Monday in a sign that investor confidence remains fragile.

    After the deal was announced, The U.S. Federal Reserve, European Central Bank and other major central banks pledged to enhance market liquidity and support other banks.

    “The market focus is on current banking sector volatility and the potential for further rate hikes by the Fed,” said Baden Moore, National Australia Bank’s head of commodity research.

    The U.S. Federal Reserve is expected to raise interest rates by 25 basis points on March 22 despite the recent banking sector turmoil, according to most of the economists polled by Reuters.

    However, some executives are calling on the central bank to pause its monetary policy tightening for now but be ready to resume raising rates later.

    “Volatility is likely to linger this week, with broader financial market concerns likely to remain at the forefront,” ING Bank analysts said in a note, adding that the looming Fed decision increases week’s Fed meeting adds to uncertainty in markets.

    Further out, a ministerial committee of OPEC and producer allies including Russia, together known as OPEC+, is set for April 3. The group agreed in October to cut oil production targets by 2 million barrels per day until the end of 2023.

    *Noah Browning, Florence Tan & Emily Chow, Editing: David Goodman – Reuters

    Follow us on twitter

    Related News

    Military busts 27 illegal refineries in Rivers, Bayelsa, others

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    Chevron CEO warned staff of rising safety issues before fatal Angola platform fire

    E-book
    Resilience Exhibition

    Latest News

    NDPHC launches 7.5MVA substation in Borno to boost power supply

    June 9, 2025

    Nigeria sends mining scholars to Australia for training

    June 9, 2025

    Shipping firms dodges $900m cost, as Nigeria hit by empty container glut

    June 9, 2025

    Military busts 27 illegal refineries in Rivers, Bayelsa, others

    June 9, 2025

    ‘OPEC oil output rises in May but compensation cuts limit hike’

    June 9, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.