Brent oil falls below $80

The price of Brent oil fell below $80 a barrel for the first time since early February, following a rally in energy markets triggered by the collapse of Silicon Valley Bank.

The bankruptcy of the bank affected the markets for money and energy commodities, especially oil. World stocks fell, while the dollar fell. Goldman Sachs forecast that the Fed would not raise interest rates next week due to the turbulence, as US officials seek to bolster confidence in the banking system and take steps to prevent contagion.

OIL BETWEEN TWO FIRE

Oil Although prices followed a fluctuating course due to fears of the financial crisis in the US, the recovery in demand in China and the depreciation of the dollar halted the fall in oil prices.

While expectations that the Fed will not raise interest rates reduced the value of the dollar, the fall in the dollar affected oil prices downwards.

“There is a battle going on in how rising economic activity in the East meets macroeconomic problems in the West,” said Stephen Innes, managing partner at SPI Asset Management.

LESS THAN $80

Brent crude futures were down 4 percent at $78.9 a barrel as of the afternoon. West Texas Intermediate (WTI) crude futures fell 4.6 percent to $73.1 a barrel.

Thus, oil prices fell to the lowest level since February 6.

Oil has been fluctuating since early 2023 on concerns about tightening US monetary policy and optimism about China’s economic recovery. Most market watchers hold high price expectations in the long-term outlook.