Singapore: oil prices Markets were little changed on Friday after a meeting between Saudi Arabia and Russia, but crude benchmarks were headed for a second weekly decline this week as a banking crisis rocked global financial markets.
Brent Crude Futures Oil was up 2 cents at $74.72 a barrel by 0133 GMT, having lost 1.4% more on Thursday.
US West Texas Intermediate crude was down 2 cents at $68.33 a barrel after closing 1.1% higher in the previous session.
Both contracts hit their lowest levels in more than a year this week and are set to post their biggest weekly declines since December at nearly 10%. Oil and other global assets were hammered this week by the collapse of Silicon Valley Bank (SVB) and Signature Bank, as the US and Swiss governments struggled to inject liquidity into banks.
Contagion risks among banks are still keeping investors on edge, reducing their appetite for assets such as commodities as they fear another rout could trigger a global recession and lead to cuts. oil demand,
“The sudden failure of SVB and Signature Bank forced a rethink about the health of the broader economy and spooked markets,” JP Morgan analysts said in a note.
“Oil demand is turning around, but we see little change in fundamentals and are inclined to shrug off financial sector volatility as we await updates on potential policy actions in the coming weeks,” analysts said. Have been.” An OPEC+ meeting and Washington potentially moving to start replenishing strategic reserves.
The Consultative Committee of the Organization of the Petroleum Exporting Countries and their allies including Russia, a grouping known as OPEC+, will meet on April 3.
Analysts at National Australia Bank said in a note that a further drop in prices could prompt OPEC+ to reduce supply to prevent a forecast inventory build-up in the second quarter.
WTI fell below $70 a barrel for the first time since December 2021, potentially making prices attractive enough for the US government to begin replenishing its strategic petroleum reserve, which is sitting at a record low.
Brent Crude Futures Oil was up 2 cents at $74.72 a barrel by 0133 GMT, having lost 1.4% more on Thursday.
US West Texas Intermediate crude was down 2 cents at $68.33 a barrel after closing 1.1% higher in the previous session.
Both contracts hit their lowest levels in more than a year this week and are set to post their biggest weekly declines since December at nearly 10%. Oil and other global assets were hammered this week by the collapse of Silicon Valley Bank (SVB) and Signature Bank, as the US and Swiss governments struggled to inject liquidity into banks.
Contagion risks among banks are still keeping investors on edge, reducing their appetite for assets such as commodities as they fear another rout could trigger a global recession and lead to cuts. oil demand,
“The sudden failure of SVB and Signature Bank forced a rethink about the health of the broader economy and spooked markets,” JP Morgan analysts said in a note.
“Oil demand is turning around, but we see little change in fundamentals and are inclined to shrug off financial sector volatility as we await updates on potential policy actions in the coming weeks,” analysts said. Have been.” An OPEC+ meeting and Washington potentially moving to start replenishing strategic reserves.
The Consultative Committee of the Organization of the Petroleum Exporting Countries and their allies including Russia, a grouping known as OPEC+, will meet on April 3.
Analysts at National Australia Bank said in a note that a further drop in prices could prompt OPEC+ to reduce supply to prevent a forecast inventory build-up in the second quarter.
WTI fell below $70 a barrel for the first time since December 2021, potentially making prices attractive enough for the US government to begin replenishing its strategic petroleum reserve, which is sitting at a record low.
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