(New York) Oil prices fell on Friday, victims of the crisis of confidence in the banking sector, which keeps investors away from risky assets like commodities.
A barrel of Brent North Sea oil for May delivery fell 1.21% to $74.99 after dropping more than 3%.
Its US equivalent, a barrel of West Texas Intermediate (WTI), for same month delivery, fell 1.00% to $69.26 after falling to $67.47.
Fears about the soundness of the banking sector resumed with renewed vigor on Friday, with European stock markets falling sharply after a sharp increase in the price of insurance against the risk of default (CDS) of several European banks.
The title of Deutsche Bank lost up to 13% on Friday to close down 8.53%.
“Banking concerns are back and oil is being hit hard by a flight from risk by hedge funds and banks reducing their oil exposures,” said Price’s Phil Flynn. Futures Group.
“We are not witnessing a decline in demand for rough so much as a decline in investment,” added the broker.
The two global crude benchmarks have thus lost a large part of their gains this week, “fears of contagion [dans le secteur bancaire] and recession risks continuing to dampen demand for riskier assets,” said Exinity analyst Han Tan.
Since the bankruptcy of the Californian bank Silicon Valley Bank (SVB), then of two American regional banks, followed by other turmoil in Europe, investors are abandoning risky assets such as raw materials, despite temporary resurgences of confidence.
The emergency takeover of Credit Suisse by its competitor UBS was indeed to signal the end of the crisis of confidence in the sector, and the absence of a stir after this rescue announced on Sunday had temporarily reassured the markets.
Another factor weighing heavily on crude prices: US Energy Secretary Jennifer Granholm “has hinted that filling the United States’ strategic petroleum reserves (SPR) could take years,” said Stephen Brennock, of PVM Energy.
“The speculation arose because the steep price decline had caused the price of WTI to plunge for some time below the range of $67-72 per barrel,” the limit the US government had set in the fall. as the condition to be met for the purchase of crude for the replenishment of reserves, explains Carsten Fritsch, of Commerzbank.
The absence of crude oil purchases to rebuild the SPR, which is currently at its lowest level since December 1983, thus represents “a blow to the outlook for oil demand”, continued Mr. Brennock.
But for Phil Flynn, this factor was already priced in by the market and the fall in prices over the past two days is “90% based on fear of the banking crisis”.
The rise in the dollar, a safe haven, also worked against the black gold market.