Continued Banking Sector Strikes Lead to Further Decline in Oil Prices

Oil prices are dropping with the continuation of strikes in the banking sector. Analysts of the American bank set the average price of oil at $94 a barrel over the next twelve months.

  • Oil prices are falling with the continuation of strikes in the banking sector

Oil prices fell today, Tuesday, as the turmoil that has gripped the banking sector for more than a week continues to affect market sentiment.

Brent crude futures for May delivery fell 1%, or 71 cents, to $73.08 a barrel.

US West Texas Intermediate crude futures also fell, by 1.1%, or 74 cents, to $66.90 a barrel.

In the previous session, both Brent and West Texas Intermediate fell by about $3 a barrel, before closing higher.

For its part, the investment banking services company “Goldman Sachs” lowered its forecast for oil prices, noting that the crisis of the collapse of the US “Silicon Valley” bank, at the beginning of this month, may spark a banking crisis that increases the risks of economic recession.

Analysts of the US bank set the average oil price at $94 a barrel over the next twelve months.

And in the biggest bankruptcies since the 2008 crisis, the US authorities announced, a few days ago, the closure of the “Silicon Valley” bank, which is close to the technology community, which suddenly found itself in a state of severe insolvency, and entrusted the management of its deposits to the Federal Deposit Insurance Corporation in the United States “FDIC”. .

On the other hand, officials from the Group of Seven major industrialized countries said that it is unlikely that the group will revise the ceiling imposed on the price of Russian oil, which is $ 60, as planned.

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Officials said the European Commission told EU ambassadors over the weekend that there was no urgency among the group for an immediate review.

The European Union had reached an agreement on fixing the price of Russian oil at $60 a barrel, after Poland abandoned its objections and demanded a price reduction.

The European decision prompted Russian President Vladimir Putin to issue a decree banning the sale of Russian oil to foreign countries that have adopted a ceiling on its price, and the presidential decree entered into force in early February.

In a related context, OPEC +, which includes the largest oil-exporting countries in the world, including Russia, is scheduled to hold a meeting on April 3.

It is noteworthy that the “OPEC +” coalition announced, on October 5, led by Saudi Arabia, a production cut of two million barrels per day, starting in November 2022, but the decision faced anger from Western countries, led by the United States of America.

US Assistant Secretary of State for Economic Affairs and Energy Jose Fernandez had earlier called on oil-producing countries, including the Organization of Petroleum Exporting Countries (OPEC), to “increase the quantities of crude supplied to the market.”

Also read: Moscow and Riyadh abide by the decision to reduce oil production by two million barrels per day

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