Oil prices fell today, Monday, to their lowest level in 15 months, amid fears that the global banking sector turmoil may lead to a recession that would lead to a decline in demand for oil, as well as fears of a possible hike in interest rates in the United States this week.
Brent crude futures for May settlement fell $2.32, or 3.2%, to $70.65 a barrel by 0710 GMT.
And contracts fell earlier to $ 70.56 a barrel, the lowest level since December 2021.
Brent fell last week by regarding 12%, its worst weekly performance since December.
US West Texas Intermediate crude for April delivery also fell $2.15, or 3.2%, to $64.59 a barrel. And it fell earlier to $ 64.51, and this was also its lowest level since December 2021.
WTI fell nearly 13% last week, its worst weekly performance since April.
April contracts will expire on Tuesday, and the most traded May futures contracts also fell 3.2% to $64.81 a barrel.
The drop in oil prices comes despite reaching a historic deal under which Switzerland’s largest bank, UBS, will acquire Credit Suisse, the country’s second largest bank, in an effort to halt the spread of the banking crisis.
After the deal was announced, the Federal Reserve, the European Central Bank and other major central banks pledged to boost market liquidity and support banks.
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