Crude oil futures fell more than 5% on Wednesday (March 15) as Credit Suisse’s financial crisis sparked concerns in the markets.
- WTI crude futures dropped $3.72, or 5.2%, to settle at $67.61 a barrel.
- Brent crude futures fell $3.76, or 4.9%, to close at $73.69 a barrel.
This marked the lowest level for both crude futures since December 2021.
Investor confidence was shaken by the announcement from Saudi National Bank (SNB), Credit Suisse’s largest shareholder, that it could not increase its financial support to Credit Suisse due to regulatory constraints. The news came after Credit Suisse postponed its 2022 results disclosure amid reporting issues for its 2021 and 2022 results.
These developments come on top of concerns about the US government’s shutdown of Silicon Valley Bank and Signature Bank, adding to market jitters.
The oil market was further weighed down by a report from the US Energy Information Administration (EIA), which said that US crude inventories rose by 1.6 million barrels last week, slightly above analysts’ expectations.
Moreover, the strength of the dollar made crude oil contracts, which are priced in dollars, more expensive for investors holding other currencies.
However, the Organization of the Petroleum Exporting Countries (OPEC) provided some support to crude futures as it raised its forecast for oil demand growth in China in 2023. OPEC expects China’s oil demand to increase by 710,000 barrels per day (bpd) in 2023, up from last month’s forecast of 590,000 bpd.
Despite this, the concerns surrounding Credit Suisse had a significant impact on the market, contributing to the third consecutive day of losses for crude futures.
The Spot Market is Open
Thursday, March 16, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 10.20 | 67.88 | +0.27 | +0.40% |