On Friday, crude oil futures suffered their worst drop of the week, as the crisis in the banking sector and concerns about a recession dragged oil prices down.
WTI crude futures fell by $1.61, or 2.36%, to settle at $66.74 a barrel, down 13% for the week, while Brent crude futures dropped by $1.73, or 2.32%, to settle at $72.97 a barrel, down 11.9% for the week.
Both WTI and Brent crude futures closed this week at 15-month lows, according to analysts. Crude oil futures faced selling pressure as investors worried about a recession in the wake of a crisis in the banking sector. The Silicon Valley Bank (SVB) of the United States suffered bankruptcy, and Credit Suisse in Switzerland also faced liquidity problems.
Analysts commented that oil prices are under pressure because investors expect that if a recession occurs, it will affect the demand for oil. The ongoing banking crisis in the US and Europe has raised concerns about a potential recession, leading traders to sell off their positions in crude oil futures.
As the world grapples with the banking crisis and economic slowdown, the outlook for oil prices remains uncertain. Experts predict that the market will continue to be volatile in the coming weeks, as investors weigh the impact of the crisis on the global economy and oil demand.
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Saturday, March 18, 2023