Commodities and Futures News

Crude oil lower; set for largest weekly loss this year

2023.03.17 10:14


© Reuters.

By Peter Nurse 

Investing.com — Oil prices weakened Friday, heading towards steep weekly losses on concerns that the ongoing banking crisis will have a negative impact on the wider economy.

By 09:45 ET (13:45 GMT), futures traded 2.1% lower at $66.90 a barrel, while the contract fell 2.1% to $73.11 a barrel. Both benchmarks are down over 11% this week, the largest weekly loss this year.

First Republic Bank’s (NYSE:) stock was under pressure again in premarket trading on Friday, falling over 20%, despite receiving $30 billion from a group of major U.S. banks, while SVB Financial Group (NASDAQ:), the parent company of Silicon Valley Bank, has filed for Chapter 11 bankruptcy, a week after federal regulators were forced to rescue the bank with emergency measures.

In Europe, Credit Suisse (SIX:) stock slumped Friday, putting the lender on course for its worst weekly drop in three years, as investors questioned its future despite the Swiss National Bank (SIX:) offering a liquidity lifeline.

This banking sector turmoil has forced market participants to take a more conservative view of likely demand growth this year.

This comes despite the Organization for Economic Cooperation and Development stating Friday that the global economic outlook has improved from a few months ago.

The Paris-based organization raised its forecast for global growth to 2.6% this year from 2.2% in its last publication in November, citing a decline in energy and food prices and China’s easing of its anti-COVID restrictions.

“Broader market concerns related to the banking sector have weighed on risk assets, while oil is also seeing some soft fundamentals at the moment,” said analysts at ING, in a note.

The International Energy Agency increased its Russian supply estimate by 300 million barrels a day, in its latest monthly oil market report, stating that Russian exports have held up better than expected.

Additionally, “the current surplus environment has also meant that [U.S.] inventories have reached an 18-month high and the market is expected to remain in surplus over 1H23,” ING added.

The rig count is due later in the session and may draw more attention than usual later after the U.S. government predicted that shale oil output is likely to top out in the spring. 

The CFTC’s , meanwhile, are likely to reflect the liquidation of speculative long positions over the last week.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 74,852.05 1.42%
ethereum
Ethereum (ETH) $ 2,814.04 7.42%
tether
Tether (USDT) $ 1.00 0.09%
solana
Solana (SOL) $ 186.94 0.03%
bnb
BNB (BNB) $ 591.47 1.72%
usd-coin
USDC (USDC) $ 1.00 0.00%
xrp
XRP (XRP) $ 0.545078 2.52%
staked-ether
Lido Staked Ether (STETH) $ 2,812.39 7.27%
dogecoin
Dogecoin (DOGE) $ 0.186861 5.46%
tron
TRON (TRX) $ 0.160219 2.02%
cardano
Cardano (ADA) $ 0.372917 4.52%
the-open-network
Toncoin (TON) $ 4.85 3.39%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,329.14 7.18%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 74,748.03 1.38%
shiba-inu
Shiba Inu (SHIB) $ 0.000019 1.90%
avalanche-2
Avalanche (AVAX) $ 26.76 1.08%
weth
WETH (WETH) $ 2,813.11 7.33%
chainlink
Chainlink (LINK) $ 12.20 3.69%
bitcoin-cash
Bitcoin Cash (BCH) $ 375.63 2.45%
sui
Sui (SUI) $ 2.25 1.71%
polkadot
Polkadot (DOT) $ 4.07 0.08%
leo-token
LEO Token (LEO) $ 6.22 0.69%
usds
USDS (USDS) $ 0.996513 0.68%
uniswap
Uniswap (UNI) $ 8.97 1.59%
litecoin
Litecoin (LTC) $ 70.63 1.14%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,959.48 7.62%
near
NEAR Protocol (NEAR) $ 4.13 0.22%
aptos
Aptos (APT) $ 9.63 3.30%
pepe
Pepe (PEPE) $ 0.00001 8.49%
bittensor
Bittensor (TAO) $ 508.62 2.84%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.39 0.31%
internet-computer
Internet Computer (ICP) $ 7.61 0.56%
dai
Dai (DAI) $ 1.00 0.19%
monero
Monero (XMR) $ 164.66 1.82%
ethereum-classic
Ethereum Classic (ETC) $ 19.81 3.73%
stellar
Stellar (XLM) $ 0.098563 2.15%
kaspa
Kaspa (KAS) $ 0.11697 0.64%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.22%
whitebit
WhiteBIT Coin (WBT) $ 19.30 0.43%
aave
Aave (AAVE) $ 181.73 11.71%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.339336 4.53%
blockstack
Stacks (STX) $ 1.65 0.15%
okb
OKB (OKB) $ 39.97 2.51%
first-digital-usd
First Digital USD (FDUSD) $ 1.00 0.26%
crypto-com-chain
Cronos (CRO) $ 0.086068 0.71%
dogwifcoin
dogwifhat (WIF) $ 2.29 3.29%
arbitrum
Arbitrum (ARB) $ 0.571088 9.60%
filecoin
Filecoin (FIL) $ 3.70 2.75%
mantle
Mantle (MNT) $ 0.627858 7.32%
celestia
Celestia (TIA) $ 5.06 6.86%