U.S. oil records weekly declines in its oil stockpile at a time when the country faces its second-largest financial crisis.
The U.S. oil market remains steady, particularly these past two weeks. Oil prices posted weekly declines over the past 20 days, and since the SVB failure, the market’s daily weekly gains have fallen significantly.
Energy market analysis says that the U.S. oil and gasoline stockpiles have also experienced a sharp decline since the start of the banking crisis. Between high inflation and increasing oil demand by EU countries and China, the U.S. inventories are running out of oil stockpiles.
The government energy data noted also that inventories of distillates increased slightly compared to February data.
To put numbers into perspective, the U.S. crude stockpiles fell by approximately 6.076 million barrels by the end of the last week of March 24. As for market expectations, it’s too soon to give an accurate number for this week’s end; however, analysis sees a further drop for both crude and gasoline inventories.
Meanwhile, in the commodity market, oil prices declined in Wednesday’s trading session as fears of further interest hiked the market. At 12:03 a.m. ET, the West Texas Intermediate fell by 0.07% to $73 per barrel. Brent crude oil declined by 0.53% to a market price estimated at $77.6 per barrel.
Meanwhile, Wall Street stock market indexes opened higher in today’s trading session. The stock market rallies just in time when the U.S. financial regulators are back for the second day in a row to capitol hill to explain the reasons behind the banking crisis and SVB failure.
The S&P 500 indexes are up by 1.2%, for a total of 4,011.70 basis points. The Nasdaq composite rose to 11,866.66 basis points, enjoying a day increase of 1.3%. The Dow futures jumped by 0.66% to a total of 32,613.8 basis points.
Moving on to the bond market, 10-year Treasury yields in the United States fell 0.38 percent to 3,554. The 30-year Treasury bond fell 0.22 percent to its current level of 3,776.
The hearing mainly discussed and investigated the top reasons behind the second-largest banking crisis in U.S. history. Lawmakers say that their primary focus is to figure out the hidden secrets and the actions that led to the failure of the SVB.
Today’s hearsay included top SVB executives and financial figures such as Martin Gruenberg, chairman of the board of directors of the Federal Deposit Insurance Corporation. Nellie Liang is an undersecretary for domestic finance at the US Treasury.
Other witnesses were included in the hearing; one of them is the Fed’s current vice chair for supervision, Michael Barr. Mrs. Bar says during his hearing session that the Federal Reserve isn’t quite sure of what happened. There were no signs of banking failure, especially for a large bank like the Silicon Valley bank.
On the subject of increasing key interest rates and their risk on the financial system, Barr says that the FED remains focused on the subject to prevent unwanted events that could trammel the economy.