On Friday (March 24), crude futures closed lower due to concerns about the liquidity of the US and European banking sector, which could lead to tight credit conditions and slow down the economy, consequently affecting the demand for oil.
WTI crude futures were down 70 cents, or 1%, at $69.26 a barrel, while Brent crude futures fell 92 cents, or 1.2%, to $74.99 a barrel. However, both were up for the week, with WTI crude futures up 3.5% and Brent crude futures up 2.8%.
Investors are keeping a close eye on the upcoming OPEC and OPEC+ committee meeting on April 3. Sources indicate that OPEC+ is likely to maintain its oil production policy by cutting output by 2 million barrels per day until the end of 2023, despite the recent banking crisis.
Deutsche Bank, Germany’s largest bank, garnered attention from investors worldwide on Friday after its share prices plummeted in both Europe and the US. This was due to Credit Default Swap (CDS), Deutsche Bank’s debt hedging derivative, hitting its highest level in four years.
In summary, concerns about the banking crisis affecting the economy and demand for oil led to a dip in crude futures on Friday. Despite this, OPEC Plus is expected to maintain its oil production policy, while investors keep a close eye on the ongoing situation with Deutsche Bank.
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Saturday, March 25, 2023