Crude Weakens Further, Waiting For Upcoming US CPI For Clarification On Fed

Oil prices slumped on Monday in the wake of the collapse of Silicon Valley Bank, as the market’s demand fears grew and risk sentiment deteriorated. Today crude is down another percent following yesterday’s -2.5%. WTI is down 1.1% to around $73.98/bbl, close to its intraday low of $73.74, and Brent is 1% lower at around $79.95, also close to the intraday low of $79.67. The USD index is up around 0.2% today.

• Oil has traded during the APAC session above support levels of $72.30 for WTI and $78.41 for Brent. Prices are likely to remain volatile until there is clarification on any economic impact from SVB and on the Fed outlook.
• Later US CPI for February is released and is likely to be watched closely. It is expected to post similar monthly increases to January but see the annual rates moderate. The Fed’s Bowman speaks at a Community Bankers Event in Hawaii. There is also US API inventory data today and OPEC’s monthly report.