{"id":4225,"date":"2023-03-14T14:56:41","date_gmt":"2023-03-14T14:56:41","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=4225"},"modified":"2023-03-14T14:56:43","modified_gmt":"2023-03-14T14:56:43","slug":"oil-prices-continue-slump-in-fallout-from-svb-shutdown","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/4225\/","title":{"rendered":"Oil prices continue slump in fallout from SVB shutdown"},"content":{"rendered":"
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Oil prices fell more than $2 a barrel on Tuesday to their sessions lows, extending the previous day’s slide, as the collapse of\u00a0Silicon Valley Bank rattled equities markets and sparked fears of a fresh financial crisis.<\/p>\n\n\n\n

Brent crude futures were down $1.11 or 1.3% to $79.66 a barrel by 1256 GMT, having earlier touched a low of $78.76. U.S. West Texas Intermediate crude futures (WTI) were down $1.24 or 1.6% to $73.56 a barrel, off a low of $72.69.<\/p>\n\n\n\n

On Monday, Brent and WTI fell to their lowest since early January and December respectively. Oil prices dropped alongside a continued slide in equities markets\u00a0(.MIWD00000PUS).<\/p>\n\n\n\n

Commerzbank analysts forecast high volatility in the energy markets in the coming days.<\/p>\n\n\n\n

“We see Monday\u2019s developments around the regional U.S. banks as more noise than news for commodity markets, and it should not have any meaningful medium- to longer-term impact,” said UBS analyst Carsten Menke.<\/p>\n\n\n\n

The sudden shutdown of SVB Financial\u00a0(SIVB.O)triggered concerns about risks to other banks resulting from the U.S. Federal Reserve’s sharp interest rate hikes over the last year.<\/p>\n\n\n\n

Traders now no longer expect a 50-basis point (bps)\u00a0rate hike\u00a0next week, with projections currently suggesting a 25 bps rise.<\/p>\n\n\n\n

A softer hike could mean the dollar weakening , which in turn is a bullish signal for oil prices. The Federal Reserve’s next two-day meeting starts next Tuesday.<\/p>\n\n\n\n

U.S. consumer prices\u00a0increased 0.4%\u00a0in February as expected, which would lower the year-on-year increase in the CPI to 6.0% in February and mark the smallest year-on-year rise since September 2021.<\/p>\n\n\n\n

Meanwhile, consumer\u00a0inflation\u00a0in China, the world’s biggest oil importer, slowed to the lowest rate in a year in February.<\/p>\n\n\n\n

In a\u00a0monthly report, the Organization of the Petroleum Exporting Countries (OPEC) further raised its forecast for Chinese oil demand growth in 2023, although it left the global total steady.<\/p>\n\n\n\n

The International Energy Agency (IEA) will publish its monthly report on Wednesday. IEA\/S<\/p>\n\n\n\n

On the supply side, the American Petroleum Institute is expected to release industry data on U.S. oil inventories at 1630 ET\/2030 GMT.<\/p>\n\n\n\n

Six analysts polled by Reuters estimated on average that crude inventories rose by about 600,000 barrels last week.<\/p>\n

Updated on