Oil prices moving in a narrow range due to supply concerns and the banking crisis


Oil prices moved in a narrow range during the early Asian trading hours today, Tuesday, after rising in the previous session, as oil markets focused on the unfolding banking crisis, supply concerns and indications of a rise in oil prices.

According to the economic bulletin of Reuters, Brent crude futures fell 0.5 percent to $77.73 a barrel at 04:18 GMT. US West Texas Intermediate crude fell 0.19%, to settle at $72.67 a barrel.

Prices rose during the previous session after Turkey stopped pumping oil from the Kurdistan region through a pipeline, after a decision in an arbitration case confirmed that Baghdad’s approval was required to ship the oil.

And the announcement of the First Citizens Bankers Bank, yesterday, Monday, that it would take over the deposits and loans of the bankrupt Silicon Valley Bank, raised feelings of optimism about the situation of the banking sector, which caused turmoil in the financial markets.

The US authorities are reported to have begun discussing expanding the emergency lending facility.

Oil prices were supported by signs of strong Chinese demand.

An annual forecast issued yesterday by a research unit of the China National Petroleum Corporation indicated that China’s imports of crude oil are expected to increase by 6.2% in 2023 over last year, to reach 540 million tons.

A preliminary survey conducted by Reuters showed that US crude oil inventories increased by about 200,000 barrels last week.

Source: National Iraqi News Agency