Oil prices dropped on Tuesday as investors fretted that recent banking-sector concerns would impact on the global economy and hamper demand for fuel.
Brent crude futures lost 69 cents, or 0.94% to trade at $73.10 per barrel by 11.41 A.M. (Bangkok time). West Texas Intermediate (WTI) crude futures fell 74 cents, or 1.09% to $66.90 a barrel.
Crude oil, which had been trading in a narrow range at the beginning of the year, recently touched its lowest level since early 2021 due to concerns about the economy, the banking sector, and the resilience of Russian flows.
The banking jitters have increased the likelihood that the Federal Reserve and other major central banks would halt the pace of monetary tightening, despite persistently high inflation. The Fed’s officials will decide their next steps on Wednesday, and markets have been betting more and more on a quarter-point boost.
A meeting of OPEC+, which includes OPEC and its allies including Russia, is scheduled for April 3. In October, the group settled on a plan to reduce oil output by 2 million barrels per day through the end of 2023.
