NEW YORK:
Oil prices fell nearly 1% to a five-week low on Tuesday as the collapse of Silicon Valley Bank (SVB) raised fears of a new financial crisis that could dampen future oil demand.
Brent futures were down 51 cents, or 0.6%, at $80.26 a barrel by 1536 GMT, while U.S. West Texas Intermediate (WTI) crude was down 56 cents, or 0.8%, at $74.24. formed.
That puts Brent on track for its lowest close since February 3, while WTI is on track for its lowest close since February 22.
The shockwave from SVB’s collapse triggered big swings in bank stocks on Tuesday as investors worried about the financial health of some lenders despite assurances from US President Joe Biden and other global politicians.
Analysts at energy consulting firm Ritterbusch and Associates said in a note that “the oil complex fell to yesterday’s lows against the US dollar, adding to US financial woes.”
US consumer prices rose sharply in February as Americans faced persistently higher rents and food costs, creating a dilemma for the Federal Reserve (FED), whose fight against inflation has been complicated by the collapse of two regional banks. And the main stock indices of Wall Street rose.
Published in The Express Tribune on March 15th2023.
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