Investors are focused on the risks posed to the financial system by the collapse of the SVB bank, while continued exports from Russia add to the market’s woes.
The oil prices decreased today, with investors focusing on the risks posed to the financial system by the collapse of the SVB bankwhile the fact that exports from Russia continue adds to the difficulties of the market.
Around 15:05 Greek time, the barrel of Brent North Sea crude for May delivery fell 4.60% to $78.97, falling below the $79 mark for the first time since early January. A barrel of US crude (WTI), for April delivery, fell 5.02% to $72.84.
After starting the session on positive ground, oil prices fell along with international markets and the dollar, with investors worried about the situation at Silicon Valley Bank (SVB). The collapse of the Californian bank forced the US authorities to announce measures to protect deposits in order to prevent market panics.
“Markets are still digesting the news and fear a possible contagion,” commented James Hart, analyst at TickMill.
The price of oil is affected when investors fear global growth and turn to so-called ‘safe havens’.
At the same time, “Russia continues its exports to many countries, which increases the supply in the market”, commented Walid Kudmani, an analyst at XTB.
Source: Skai
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