Thursday, March 30, 2023

Texas oil falls 5.21% and closes at US$67.61

The price of intermediate oil from Texas (WTI) fell 5.21% this Wednesday and closed at US$67.61 a barrel, affected by the banking crisis that began last Friday in the United States and is now strongly punishing European banks and, in special, to Credit Suisse.

At the close of business in New York, a barrel of WTI for April delivery was down US$3.72 from the previous day’s close.

The last time the price of US crude oil was below $70 was in December 2021.

Investors fear that a new financial crisis will translate into a reduction in future demand for oil.

In addition, the International Energy Agency (IEA) reported Wednesday that oil has been accumulating in storage tanks because supply has been strong and demand has remained weak.

“The market is caught in the riptide of supply outpacing still lackluster demand, with inventories rising to levels not seen in 18 months,” the IEA monthly report said today.

On the other hand, natural gas futures contracts for April were down US$0.13 to US$2.43, and gasoline futures due the same month were down US$0.11 to US$2.43.

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