Crude extends gains early Wed; WTI gets bigger boost - March 29, 2023

  • Crude futures were continuing to trek higher early Wednesday amid sustained relief on the US-Europe banking crisis front. About 450,000 b/d of northern Iraqi crude exports from the Turkish port of Ceyhan remained suspended for a fourth day, which was also supportive of sentiment.
  • The American Petroleum Institute late-Tuesday reported sizeable drawdowns in US commercial crude and gasoline inventories for the week ended March 24, accompanied by a minor build in distillate stocks.
  • Tuesday brought continuing relief to the broader financial markets, with no new instances of banks teetering on the edge.



Lingering fear of banking crisis continues to weigh on crude - March 24, 2023

Since the banking crisis erupted about a fortnight ago, crude has been prone to steep slides amid panicky sell-offs, while the recovery has been small and sluggish. 

At the start of this week, prices began to gradually recover and it seemed like Brent futures had bottomed out with last Friday’s 15-month-low settlement of $72.97. But as we closed this report, crude was back on a slippery slope that could re-test last Friday’s nadir.

There could be a “Friday effect” amplifying risk-aversion: Traders loathe to go into the weekend not knowing what else might break down or implode before Monday comes around. 

But there are good reasons why the fears that first erupted on o the global stage with the collapse of the Silicon Valley Bank on March 10 are still persisting. We unpack the factors and share our perspective on what it means for oil.