Oil Prices Hit Lowest Level in 15 Months Amid Global Banking Turmoil

Oil prices dropped today, Monday, to their lowest level in 15 months, driven by concerns that the turmoil affecting the global banking sector and the potential increase in interest rates in the United States could lead to an economic recession, weakening fuel demand. In volatile trading, Brent crude futures for May fell by 87 cents, or 1.2%, to $72.10 per barrel. Meanwhile, West Texas Intermediate crude for April dropped by 85 cents, or 1.3%, to $65.89 per barrel before contract trading ends tomorrow, Tuesday. The most actively traded futures for May also fell by 1.2% to $66.11 per barrel. Both Brent and West Texas crude fell by about three percent earlier, marking their lowest levels since December 2021. The two benchmark crudes declined by more than ten percent last week as the banking crisis worsened. This drop in oil prices comes despite UBS's acquisition of Credit Suisse, which sought to contain the spread of the banking crisis. However, bank stocks and bonds continued to decline today, reflecting that investor confidence remains fragile.