BUSINESS:Brent crude futures down 87 cents, or 1.1%, at $79.90 a barrel on Tuesday, extending the previous day’s decline. As the collapse of Silicon Valley Bank rattled equity markets and sparked concern about a new financial crisis.
The price of a barrel of U.S. West Texas Intermediate crude (WTI) fell by 85 cents, or 1.1%, to $73.93. According to Sources, Brent fell to its lowest level since early January, while WTI fell to its lowest level since December.
Concerns about the risks pose to other banks by the U.S. Federal Reserve’s sharp interest rate increases over the past year were sparks by the sudden shutdown of SVB Financial. Additionally, it stoke speculation regarding whether the central bank would slow down its monetary tightening.
Also Read : Why US Second Largest Silicon Valley Bank Collapsed ?
After fears of contagion from the collapse of Silicon Valley Bank cause a sell-off in U.S. assets at the end of last week and state regulators closed New York-based Signature Bank on Sunday, U.S. authorities launched emergency measures on Sunday to restore confidence in the banking system.
While analyst said, signs of a weaker-than-expected economic recovery in China despite the lifting of China’s strict COVID-19 restrictions put pressure on oil prices in addition to the shockwaves caused by the Silicon Valley Bank.
Moreover, they also saidĀ “The market previously expects a strong recovery of the Chinese economy, but the latest February inflation rate was only 1 percent year-over-year, reflecting the current deflationary state of the Chinese economy and weak demand.”
China statistics department delivered information that showing purchaser expansion on the planet’s second biggest economy eased back to the most reduce rate in a year in February as customers stay careful even after pandemic controlsĀ lift in late 2022.
The American Petroleum Institute is anticipate to release industry data on U.S. oil inventories on Tuesday, which is relates to U.S. supply news.
A Reuters surveyed six analysts and found that crude inventories increased by approximately 600,000 barrels on average in the week ending March 10.
