Crude oil prices on the New York Fuel Exchange are falling sharply, and the raw material is already worth around $ 65 per barrel. Investors’ concerns about the global banking crisis are reducing investors’ appetite for risky assets, according to brokers.
A barrel of West Texas Intermediate crude for April delivery trades at $64.85 at NYMEX in New York, down 2.83% to its lowest since December 2021.
Brent crude on ICE for May delivery is priced at $70.92 a barrel, down 2.80 percent.
Concerns about the global banking crisis
Investors fear an intensification of the global banking crisis, and this does not encourage players to engage in risky asset markets.
Nervous moods in the markets were not calmed by reports that UBS bank will take over Credit Suisse. The Swiss Central Bank (SNB) is expected to provide a significant amount of funding to the combined bank.
Analysts at Goldman Sachs Group Inc., one of the most bullish banks on oil markets, are no longer betting on $100 a barrel of oil this year.
GS lowered its forecast for Brent to $94 a barrel over the next 12 months and to $97 a barrel in the second half of 2024, compared to an earlier estimate of $100 a barrel.
On the day of the assault Russia to Ukraine on February 24, 2022, a barrel of Brent was $99 and WTI was priced at $92.8. At the climax of the increase in oil prices, they reached USA to USD 130 per barrel, and in Europe they were close to USD 140 per barrel.
Main photo source: Shutterstock