March 15, 2023 16:34 GMT
Banking Fallout Punishing Oil Markets
The crude sell off has maintained its downward momentum as banking fears mount resulting in oil prices tumbling.
- The unease over the banking sector is overriding any optimism about China’s resurgent demand levels post-lockdown.
- An earlier report by the IEA and yesterday’s monthly OPEC report had sparked a bullish tone for global oil demand on the back of China’s reopening.
- The fall marks a sharp turn away from numerous bank forecasts for $100/bbl oil this year.
- Oil has been pulled between central bank tightening and Chinese demand keeping them within a $10 range for much of this year.
- Brent MAY 23 down -6.6% at 72.34$/bbl
- WTI APR 23 down -6.9% at 66.43$/bbl