The U.S. West Texas Intermediate falls to its worst per barrel price for the first time since December 2021

bank crash

The U.S. West Texas Intermediate falls to its worst per barrel price for the first time since December 2021.

Bank contagion worries in the U.S. and around the world widen as fears of future bank crashes and declines grow. Wall Street faces one of its worst phases of the year; recession probabilities knock on the door, and major fund withdrawals are caused by the market turmoil.

For the first time this year, oil prices tumbled below the $70 per barrel level. Wall Street and individual stocks record multiple share declines, and the U.S. Senate raises the red flag.

Experts believe that the U.S. economy has weakened against its peers, which include China and the EU. China emerged in an alliance with Saudi Arabia, and its economic and political friend circle is expanding, whereas the U.S. alliances are shrinking. For the first time since the end of the Cold War, the U.S. economy might really crash, and the recent indicators don’t show any signs of recovery.

Since the Silicon Valley bank closure, fears of contagion have spread widely, and FED officials might pause rising key interest rates for this meeting and the next if things get tense.

In the oil news, the banking crisis did in less than one week what the Russian crisis, COVID, and China tensions couldn’t do in the past 2 years. For the first time since December 2012, the West Texas Intermediate fell to $68 per barrel, and the index declined by more than 5% as of 13:44 p.m. ET. Bernt oil was down by 4% to $74 per barrel, while gold is gathering momentum and becoming more appealing during the market turmoil hours.

The latest decline in oil prices since 2021 was caused by the long-term effect of the increasing Chinese demand for oil and the sudden banking crisis. That’s according to John Kuldiff of the New York energy hedge fund Again Capital. John says in his latest interviews that China is emerging, in alliance with Russia, and paying for oil with the yuan, and oil demand has increased significantly since the COVID reopening policy.

China’s recent attempt to dominate oil demand and consumption has clearly caused instability in the global market.

Add to that the banking crisis, which revealed how fragile the U.S. economy is and how weakened it was. All these hard and unfortunate indicators left inventors and investors cautious about what came next.

On one hand, marketers fear that last week’s SVB closures will cause large credit issues. Most banks took immediate action to secure the value of their bonds from credit swaps. Financial experts see that the SVB bank’s decline was an early sign of more declines in the future.

Wall Street describes it as the worst banking crisis since 2008; in today’s session, all stock market main indexes posted significant losses. The S&P 500 benchmark fell 0.94% to 3,883.6 basis points. The Nasdaq indexes recovered some of their losses and posted a 0.5% decline to reach a total of 11,419.3.

The Dow Jones index was the top loser of Wednesday’s session, declining more than 1,14% to 31,785.1 basis points.

Written by Editor

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