Oil surged to the highest in about two weeks as supply disruptions in Turkey added to broader market optimism that a wider banking contagion may be avoided.
The purchase of Silicon Valley Bank by First Citizens BancShares Inc. eased concerns that banking-sector turmoil may spill over into a wider crisis. Meanwhile, a legal dispute between between Iraq, its semi-autonomous region of Kurdistan and Turkey halted about 400,000 barrels a day of crude exports, and French refineries are running at a fraction of normal capacity amid strikes to protest the government’s pension reforms.
“Crude is experiencing a nice bounce today as a sense of calm in financial markets has stemmed the bleeding of liquidations across the crude complex,” said Rebecca Babin, a senior energy trader at CIBC Private Wealth.
Oil is on track to post its worst month since November as a potential U.S. recession and resilient Russian output weigh on prices. In the days ahead, traders will focus on macroeconomic factors, including a key measure of U.S. inflation.
Prices:
- WTI for May delivery rose US$3.55 to settle at US$72.81 a barrel in New York.
- Brent for May settlement increased US$3.13 to US$78.12.
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