Banking Woes Root of Volatility in WTI, Brent Crude Settlements on Monday

Global banking worries continued to incite volatility in the energy markets on Monday. After plunging to their lowest rock-bottom level in the past 15 months, oil prices slightly rebounded with West Texas Intermediate (WTI) crude futures for April gaining 90 cents or 1.4% to close at $67.64 a barrel. WTI crude futures for May rose 89 cents or 1.3% to close at $67.82 a barrel while Brent crude futures rose 82 cents or 1.1% to settle at $73.79 per barrel for May.


Earlier in the day, both WTI and Brent crude fell nearly $3 a barrel, reaching its lowest level since December 2021. This followed last week’s 10% drop as concerns loomed over the banking crisis. As Wall Street posted gains in the S&P 500 and Dow Jones throughout Monday, oil futures pivoted, resulting in a small uptick in closing settlements.


Despite the announcement of a bailout by Swiss banking giant UBS to purchase Credit Suisse, oil futures dropped early in the day. Following the announcement, the U.S. Federal Reserve and a consortium of central banks vowed their support. Economists are divided on whether the Fed will raise or pause its projected rate hike on Wednesday.