Dear traders!
Oil prices are dropping and West Texas Intermediate has already fallen below $65 a barrel as rising investor fears about the global banking crisis have sapped appetite for risky assets, including commodities.
U.S. benchmark oil futures fell 2.8% to $64.89 a barrel, the lowest level since December 2021. The decline came despite Swiss authorities attempting to save Credit Suisse Group AG with the help of UBS Group AG over the weekend. In addition, the Federal Reserve and five other central banks announced coordinated actions to increase the liquidity of dollar swaps.
By 14:51 in Singapore, WTI for April delivery traded at $64.90 a barrel on the New York Mercantile Exchange.
At the same time, Goldman Sachs lowered its forecasts for Brent oil. The investment bank now expects Brent to average $94 a barrel over the next 12 months and $97 in the second half of 2024, compared to $100 previously.
