Oil prices stable in early trade

21 Mar 2023 , 08:11 AM

Due to market concerns that recent issues in the banking sector would have a negative impact on the global economy and reduce demand for crude, oil prices fell early in the previous session before stabilizing on Tuesday.

The price of Brent crude futures for May settlement  increased by 5 cents to $73.84 per barrel. West Texas Intermediate (WTI) oil futures in the United States increased 9 cents to $67.73 a barrel. Both Brent and WTI dropped by around $3 per barrel in the previous session before ending the day higher.

Tuesday’s modest price increase followed a historic transaction in which UBS, the largest bank in Switzerland, agreed to acquire Credit Suisse in an effort to preserve the bank.

Major central banks, including the U.S. Federal Reserve and the European Central Bank, said they would provide market liquidity and help other banks after the accord was announced.

Nevertheless, G7 officials stated that it was doubtful the Group of Seven Nations would change the $60 per barrel price restriction on Russian oil as anticipated. The authorities claimed that over the weekend, the European Commission informed the ambassadors of EU nations that there was no urgent need for a rapid assessment.

On April 3, OPEC+, which consists of the major oil exporting nations in the world and their allies, including Russia, will convene. In October, the group decided to reduce its daily oil output targets by 2 million barrels through the end of 2023.

For feedback and suggestions, write to us at [e-mail]