Oil prices intensified their fall on Friday afternoon amid general volatility in global financial markets.
May futures on Brent at London’s ICE Futures Exchange fell by $2.47 (3.25%) to $73.44 a barrel by 12:56 pm.
By the same time quotations of WTI futures on the electronic trading at the New York Mercantile Exchange (NYMEX) decreased by $2.46 (3.52%) – to $67.5 per barrel.
The day before Brent fell 1% and WTI – 1.3%, decreasing for the first time in four sessions on fears that the willingness of the Federal Reserve to raise interest rates further may lead to a recession in the U.S. economy.
Quotes continued to fall on Friday on a new wave of declines in European bank stocks and a stronger dollar. A strong dollar makes commodities less attractive to holders of other currencies.
Oil could end the first quarter in a record decline since early 2020 due to fears of a U.S. recession and banking sector problems while supplies remain high, Bloomberg notes.
“The banking crisis is spreading into real estate and the stock market has lost risk appetite again,” wrote Ole Sloth Hansen, head of commodity strategy at Saxo Bank. – The dollar is strengthening and U.S. and especially European stocks are actively falling, which is putting pressure on the commodities sector.”
