Oil prices fell on Monday, tracking stocks, as the collapse of the Silicon Valley bank raised fears of a new financial crisis, but the recovery of Chinese demand provided some support. Brent crude futures fell $1.44, or 1.7%, to $81.34 a barrel. US West Texas Intermediate crude futures also fell $1.40, or 1.8%, to $75.28 a barrel.
Fears of a continuation of crises following the collapse of the Silicon Valley bank led to selling operations in US assets at the beginning of the week. The banking sector declined on the European Stoxx 600 index by 5.7%, following losing 3.8% on Friday. The US authorities launched emergency measures on Sunday to boost confidence in the banking system.
Market sentiment is fragile, as rising crude oil inventories in the United States heightened fears that the US Federal Reserve will further tighten monetary policy, analysts at ANZ Bank said in a note on Monday. A weaker dollar makes oil cheaper for holders of other currencies, which supports crude prices. (Archyde.com)
