- Oil extends losses from last week amid fears over an economic slowdown and banking crisis
- April ’23 WTI lost 62c this morning to trade around $66/Bbl
- This morning, prompt month WTI and Brent hit new YTD lows of $64.15/Bbl and $70.13/Bbl, respectively
- Crude remains under pressure amid the banking crisis, concerns over a global economic slowdown, and Russia’s resilient crude exports
- Additionally, UBS agreed to an emergency purchase of Credit Suisse in a government-brokered deal over the weekend in an effort to create liquidity
- Yesterday, the Federal Reserve and five other central banks announced coordinated action to improve liquidity through U.S. dollar swap agreements
- The market will closely be watching the Fed meeting's decisions this week (March 21 and 22)
- April ’23 WTI lost 62c this morning to trade around $66/Bbl
- Goldman Sachs no longer forecasts that oil will hit $100/Bbl this year (BBG)
- Goldman Sachs revised its forecasts as concerns about the banking system and the potential of a recession outweighed a surge in demand in China
- The bank now forecasts Brent reaching $94/Bbl for the next 12 months and $97/Bbl in 2H2024, versus $100/Bbl previously
- The bank said in a note on March 18 that “oil prices have plunged despite the China demand boom given banking stress, recession fears, and an exodus of investor flows”
- The Fed and global central banks announce boosting dollar funding (BBG)
- The Fed and five other central banks announced coordinated efforts to bolster liquidity in U.S. dollar swap agreements on Sunday in an effort to reduce strain on the banking system
- The number of transactions with a 7-day maturity will rise among the central banks taking part in the dollar swaps, from weekly to daily
- The Fed announced that daily operations would start today and go at least until the end of April
- The Bank of Canada, Bank of England, Bank of Japan, European Central Bank, and Swiss National Bank are the other banks that are a part of the arrangement