WTI climbs on risk-on impulse, and Saudi-Russia meeting eased fears
- WTI is recovering from falling 5% on Wednesday due to a risk-off impulse.
- OPEC: The week’s fall is blamed on sentiment shifting sour on turbulence in the financial market.
- The market sentiment improved on Swiss authorities supporting Credit Suisse.
Western Texas Intermediate (WTI), the US crude oil benchmark, gains traction after dropping to a 15-month-low at around 65.72, sponsored by a risk-on impulse. The Wall Street Journal (WSJ) reported that major banks in the US are stepping in to help First Republic Bank, an action cheered by US equities and oil prices. WTI is trading at 68.25, above its opening price by 0.03%.
Saudi Arabia and Russia’s discussion capped WTI’s fall
Additionally to the abovementioned factors, WTI is underpinned by reports that Saudi Arabia and Russia met to discuss enhancing market stability. Saudi’s energy minister Prince Abdulaziz bin Salman and Russian deputy prime minister Alexander Novak met in the Saudi capital to discuss the OPEC+ group’s efforts to maintain market balance.
Delegates from the Organization of Petroleum Exporting Countries (OPEC) and its allies told Reuters that “this week’s slide in oil prices to be driven by financial fears, not any imbalance between demand and supply, and expects the market to stabilize.”
WTI fell due to the turbulence in the financial markets. Swiss authorities backing up Credit Suisse (CS) and US Treasury Secretary Janet Yellen assuring lawmakers that the US banking system remained sound were a tailwind for WTI.
This week, OPEC and the International Energy Agency (IEA) have both predicted an increase in oil demand, but the market is still being affected by concerns about excess supply.
The IEA commented that stockpiles in developed countries hit an 18-month high, while Russian output stayed around familiar levels in February.
WTI Technical levels