Crude oil prices flat in early trade

17 Mar 2023 , 09:00 AM

Although a meeting between Saudi Arabia and Russia calmed the markets, oil prices were slightly altered on Friday, but crude benchmarks were still on track to tumble for a second consecutive week after a banking crisis caused a sell-off in international financial markets this week.

Brent crude prices had recovered from three days of losses to close 1.4% higher on Thursday. Brent crude futures were up 2 cents to $74.72 a barrel.U.S. West Texas Intermediate crude was trading at $68.33 a barrel, down 2 cents from the previous session’s closing price increase of 1.1%.

This week, both contracts fell to their lowest levels in more than a year, and they are expected to experience their 10% largest weekly drops since December. Last week’s collapse of Silicon Valley Bank (SVB) and Signature Bank forced the U.S. and Swiss governments to scramble to shore up liquidity at banks, putting pressure on oil and other global assets.

Investors’ enthusiasm for assets like commodities is being curbed by contagion concerns among banks, as they worry that a deeper crash could lead to a worldwide recession and reduce demand for oil.

On April 3, the advisory council of the Organization of the Petroleum Exporting Countries (OPEC) and their allies, which includes Russia, will convene.

For the first time since December 2021, WTI went below $70 a barrel. This may have made pricing enticing enough for the U.S. government to begin replenishing its Strategic Petroleum Reserve, which is now at record-low levels.

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