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WTI oil barrel falls below $70 for the first time in 15 months

WTI oil barrel falls below $70 for the first time in 15 months

The contract of Petroleum American WTI was trading this Wednesday at its lowest price since December 2021, for fear of the impact that the bank’s difficulties may have Credit Suissewhich are added to the bankruptcy of the American Silicon Valley Bank.

By 1130 GMT, a barrel of West Texas Intermediate (WTI) for April delivery was down 1.53% at $70.24, after briefly trading below the $70 threshold at $69.76.

Its European equivalent, a barrel of Brent from the North Sea for delivery in May, lost 1.43% and was trading at $76.34, the lowest level of the year.

The fallout from the bankruptcy of Silicon Valley Bank (SVB) continues “affecting the financial and oil markets”, according to analysts at Energi Danmark. Given this volatility, investors prefer safe-haven securities.

“Prices fall because the market fears a recession and a drop in demand,” the analysts added.

This Wednesday, fears with European banks were fueled by Credit Suisse, after its main shareholder, the Saudi National Bank, ruled out increasing its stake in the capital of this entity that has already been dragging problems for months.

“What started as a regional banking crisis in the United States has suddenly morphed into a European crisis”IG analyst Chris Beauchamp told AFP.

Source: AFP

Source: Gestion

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