Oil prices fell again on Friday to close at their lowest level in almost 15 months, undermined by the ongoing banking crisis that raised fears of a slowdown in credit and the economy.
The price of a barrel of Brent from the North Sea for delivery in May fell 2.31%, closing at 72.97 dollars.
US West Texas Intermediate (WTI), for April delivery, shed 2.35% to $66.74.
In session, the two market reference varieties had fallen to levels not seen since December 2021.
“The courses are weighed down by the banking turmoil, which does not calm down, and fears that the monetary tightening of the Fed (US central bank) will derail the economy,” said the American, in a note, Edward Moya, an analyst at Oanda .
“This position is excessive”
“And if the economy slows, demand will fall,” said Mark Wagoner of Excel Futures.
Since the start of the shock that hit US banks a week ago, black gold, often considered a leading indicator of the economy, has been one of the hardest-hit assets.
WTI contracted almost 13% in a week.
“This defection is excessive and driven by speculative interests, for the most part,” Commerzank analysts said.
Officials of the member countries of the Organization of Petroleum Exporting Countries (OPEC), quoted by various media, suggested that the cartel would not act in the short term to try to stop the fall in prices.
While it had pledged to buy back crude on the market if WTI fell below $67 a barrel, as is the case at the moment, the US government also seems to be cajoling.
“We should take a breather and wait,” pleaded on Bloomberg TV Amos Hochstein, an adviser to US President Joe Biden on energy issues.
For Mark Wagoner, however, prices are close to the bottom. “Demand will pick up” with the arrival of spring, he says. Refineries, many of which were undergoing maintenance, “will come back to work and we will see crude oil reserves fall.”
Source: BFM TV
