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.
