Oil prices advanced from 15-month lows earlier in the day as Credit Suisse’s bailout eased fears of global banking sector turmoil that could weigh on economic growth and fuel demand.
After initial volatility on Monday, sentiment in financial markets increased following UBS’s takeover of Credit Suisse.
Brent oil prices advanced by 52 cents, or 0.72%, and amounted to 74.32 USD per barrel.
The next focus for investors is the outcome of the US Federal Reserve on how much it will raise interest rates when it ends its meeting session. Since the banking turmoil began this month, markets have revised expectations for the Fed’s next rate hike to 25 basis points.
The dollar index advanced after hitting a 5-week minimum level in the previous session. A stronger dollar makes oil more pricy for holders of other currencies and may dampen demand.
A meeting of key representatives of OPEC+ will take place on April 3. The price pullback reflects banking fears, not a disturbance in the balance of supply and demand.
Daily gas volume supplied to China
Russian energy giant Gazprom said Tuesday it reached a record daily volume of gas flowing to China through the Power of Siberia pipeline.
China is increasingly becoming Russia’s main economic partner after the West imposed sanctions on Moscow last year over its invasion of Ukraine.
Pipeline deliveries of Siberian power to Russia’s east reached a 15.5 billion cubic meters peak last year. By 2025, Moscow plans to increase and double its pipeline exports to 38 billion cubic meters annually.
COMMENTS