- Financial turbulence weighs on investor sentiment and drags black gold lower.
- WTI rebounded slightly after hitting a fresh 2023 low of $65.22 a barrel.
West Texas Intermediate fell to $65.22 a barrel on Friday, its lowest since November 2022. It is currently trading around $67.30 a barrel, a break lower amid financial turmoil weighing on market sentiment.
The banking crisis unleashed by Silicon Valley Bank (SVB) and Signature Bank last week worsened, with Credit Suisse under siege after its largest shareholder ruled out providing financial aid to the company. Stocks tumbled despite the authorities’ efforts to ensure that the banking sector was strong enough to weather the situation.
However, concerns persisted after SVB officially announced its bankruptcy on Friday, while yet another bank, First Republic, came under scrutiny. European and US indices are trading in the red and are set to end the week in negative territory.
For its part, the WTI chains its fifth consecutive day down, and the daily technical data point to a continuation of the falls. Once below the mentioned low, the fall could extend to $62.4, the December 2021 monthly low. A break below this last level would attract speculative buying, as $60.00 is a major psychological barrier. Black gold currently finds sellers around $70.00, and gains above this level are unlikely to prosper.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
