Oil prices advanced as investors weighed efforts by authorities to contain fears about the global banking system. At the same time, the Russian president’s plans to deploy tactical nuclear weapons in Belarus raised tensions in Europe.
Brent crude oil futures rose $1.13, or 1.49%, to $76.12 a barrel. West Texas Intermediate American crude oil advanced by 1.15 dollars or 1.66% and amounted to 70.41 dollars per barrel. Brent advanced 2.82% last week, while WTI advanced 3.82% on easing volatility in the banking sector.
Oil prices will remain volatile in the near term under the current financial market volatility but maintain a positive outlook.
China’s crude oil imports and demand continue to rise, and a pullback in Russian production will tighten the oil market and lift prices ahead.
First Citizens BancShares Inc said it would buy the deposits and loans of failed Silicon Valley Bank, ending one chapter in a crisis of confidence that has swept financial markets. There is also the prospect of additional funding support for banks. News quickly spread that US authorities were in the early stages of discussions about increasing the chances of emergency lending facilities.
Putin’s plans to install tactical nuclear weapons in Belarus also received support for oil prices.
Russia’s deputy prime minister said Moscow is very close to a plan to cut oil production by 500,000 daily to about 9.4 million barrels daily. The country’s crude oil exports are waiting to remain firm as it cuts factory output in April, statistics from industry sources showed on Friday. Russia’s petroleum exports have been more severely impacted by the recent European Union sanctions than those of crude oil, resulting in several tankers filled with diesel sitting idle while awaiting purchasers.
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