Published: March 13, 2023 at 8:14 a.m. ET
Oil futures fell on Monday as investors tried to absorb the fallout from the collapse of Silicon Valley Bank.
Federal regulators moved on Sunday to make bank depositors whole, while New York shuttered Signature Bank, leaving worries about a potential financial crisis hanging over markets as the trading week began.
Price action
Market drivers
Regulators…
Oil futures fell on Monday as investors tried to absorb the fallout from the collapse of Silicon Valley Bank.
Federal regulators moved on Sunday to make bank depositors whole, while New York shuttered Signature Bank, leaving worries about a potential financial crisis hanging over markets as the trading week began.
Price action
- West Texas Intermediate crude for April delivery
CL.1
CL00
CLJ23
fell $1.03, or 1.3%, to $75.65 a share. barrel on the New York Mercantile Exchange.
- May Brent raw
BRN00
BRNK23
,
the global benchmark was down $1.05, or 1.3%, at $81.73 a share. barrel on ICE Futures Europe. - Back on Nymex, April gasoline
RBJ23
fell 1.1% to $2.617 per gallon while April fired oil
HOJ23
lost 0.8% to $2.75 per gallon.
- April natural gas
NGJ23
jumped 1.6% to $2,597 per million British thermal units.
Market drivers
Regulators late Sunday guaranteed all deposits at SVB and Signature Bank, while the Federal Reserve announced a new facility aimed at ensuring customers at all banks would have access to their deposits as it tried to stave off a series of bank runs.
SVB was shut down by California regulators on Friday, marking the second-largest bank collapse in US history.
Read: SVB’s collapse means that you have to be aware of more volatility on the stock market, say analysts.
But the shaking remained. While U.S. stock index futures were steady, albeit in choppy trading, investors continued to pile into safe-haven assets such as U.S. Treasuries and gold while shunning other commodities.
Need to know: SVB’s rescue means that the Fed will not raise interest rates in March, says Goldman Sachs
However, the downside may be limited by reports of strong buying from China, analysts at ING said in a note, a move linked to a narrowing of the price spread between Brent and Dubai crude.
“This makes sense given the demand recovery expected not only from China but wider Asia following an easing of China’s (zero-COVID) policy at the end of last year,” they wrote.