• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 16 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 21 hours How Far Have We Really Gotten With Alternative Energy
  • 7 days Natron Energy Achieves First-Ever Commercial-Scale Production of Sodium-Ion Batteries in the U.S.
  • 8 days Bad news for e-cars keeps coming
  • 7 hours By Kellen McGovern Jones - "BlackRock Behind New TX-LA Offshore Wind Farm"
  • 6 days The United States produced more crude oil than any nation, at any time.
  • 9 days RUSSIA - Turkey & India Stop Buying Russian Oil as USA Increases Crackdown on Sanctions
Hedge Funds Are Headhunting Succesful Power Traders

Hedge Funds Are Headhunting Succesful Power Traders

Hedge funds are offering big…

China’s Renewable Energy Surge Strains Power Grid

China’s Renewable Energy Surge Strains Power Grid

China's rapid deployment of wind…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

The Worst Week Of The Year So Far For Oil Prices

  • Oil prices are set to close out their worst week of the year so far, falling more than 10% on fears of a banking sector collapse.
  • The collapse of Silicon Valley Bank last Friday sparked fears of contagion across the U.S., which then spread to Europe with Credit Suisse's liquidity troubles.
  • Oil prices settled 1% higher on Thursday following news that Russia and Saudi Arabia had met to discuss market stability, although traders remain cautious.
oil prices

Crude oil prices are about to end their worst week since the start of the year as news from the banking industry ignited fears of demand depression.

As of Friday morning, West Texas Intermediate was down by about 10% for the week. Brent crude was also down considerably, dropping from $83 per barrel on Monday to less than $76 per barrel at the time of writing.

The rout began early in the week, after last Friday’s collapse of Silicon Valley Bank. The subsequent demise of Signature Bank added fuel to fears of an impending meltdown in finance, and news of liquidity troubles at Credit Suisse, one of the world’s largest lenders, did not help.

The flood of bad banking news continued throughout the week despite assurances from President Biden and Treasury Secretary Yellen that the U.S. banking system was sound and safe.

The end of the rout came after a meeting between Saudi Arabia and Russia to discuss measures to stabilize the market.

"That news woke up the bulls in the market, and it was kind of expected with the sell-off that we have seen over the past few sessions," John Kilduff from Again Capital told Reuters.

"Market sentiment remains fragile as investors continue to weigh up the latest developments in the banking sector both in the U.S. and in Europe," City Index analyst Fiona Cincotta told Reuters.

According to ING’s head of commodities strategy, who spoke to Bloomberg, “External factors continue to dictate price action for oil. The scale of the selloff in oil will likely be a concern for OPEC+, but they are unlikely to take quick action, instead they will probably wait for the dust to settle.”

OPEC+, for its part, demonstrated calm, attributing the price drop to financial industry fears, with several delegates telling Reuters that they expected the situation to normalize soon as it was not caused by any change in the balance between supply and demand.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News