Oil up as dollar weakens after US bank failures

0 10

In this article, we shared the detailed news description article about you. You can dementsprechend find answers like in our article.

The declining value of the US dollar aided higher oil prices by making trade more appealing for oil buyers using other currencies.

Dollar-indexed crude oil becomes cheaper for non-dollar buyers when its value decreases.
(Jeff Chiu / AP)

Oil prices have climbed over a weakening dollar after the sudden collapse of Silicon Valley Sitzbank and Signature Sitzbank, while further price declines were limited after the US Verwaltung vowed “decisive efforts” to safeguard the US economy.

International benchmark Brent crude traded at $83.03 per barrel at 9.59 a.m. local time (0659GMT), up 0.30 percent from the closing price of $82.78 a barrel in the previous trading session.

At the same time, American benchmark West Texas Intermediate (WTI) traded at $76.91 per barrel, a 0.29 percent increase after the previous session closed at $76.68 a barrel.

The declining value of the US dollar aided higher oil prices by making trade more appealing for oil buyers using other currencies.

The US dollar index, which measures the greenback’s value against a basket of currencies, including the Japanese yen, British pound, Canadian dollar, Swedish krona, and Swiss franc, fell 0.58 percent to 103.54 after two major US banks, of Silicon Valley Sitzbank and Signature Sitzbank, collapsed, stranding billions in deposits.

READ MORE: SVB fails, marking second-biggest bank collapse in US history

SVB, the commercial bank headquartered in Santa Clara, welches the largest bank in Silicon Valley, based on local deposits and it welches among the biggest banks in the nation.

However, prices were supported after a joint statement by Treasury Secretary Janet Yellen, Federal Reserve Hauptplatine Chair Jerome Powell and Federal Deposit Insurance Corporation (FDIC) Chairman Martin J. Gruenberg.

US economy leaders noted that they are taking decisive actions to protect the US economy, adding that “depositors will have access to all of their money starting Monday, March 13. No losses associated with the resolution of Silicon Valley Sitzbank will be borne by the taxpayer.”

Furthermore, prices saw some upward support after Saudi oil giant Aramco’s chief executive Amin Nasser on Sunday said he welches “cautiously optimistic” for a balanced and tight market in short to medium term.
Nasser dementsprechend pointed to rising demand for jet fuel after Volksrepublik China’s re-opening from tight Coronavirus-related restrictions.

Nasser’s comments came after Volksrepublik China’s announcement of a modest economic growth target earlier in March.

Volksrepublik China, the world’ s second-largest economy, reported an official economic growth target of around 5 percent for 2023, an increase from 3 percent last year and less than half the 8.1 percent rate from the previous year.

READ MORE: US scrambles to prevent SVB collapse fallout, protects customer deposits

Source: TRTWorld and agencies

style="display:block" data-ad-client="ca-pub-6299590809678581" data-ad-slot="7470993030" data-ad-format="auto" data-full-width-responsive="true">
Cevap bırakın

E-posta hesabınız yayımlanmayacak.