Oil prices have collapsed to lows since 2021

On Monday, the oil market continues to show a drop in prices that started last week.

The current Brent quote is $70.13 per barrel, on Friday the asset closed trading at $75.70 per barrel. North American WTI oil shows similar dynamics: falling to $64.40 after rising last Friday to $69.50 per barrel. 

Analysts note that over the five working days of last week, Brent collapsed by 11.9%, WTI – by 13%. This was the most significant weekly decline since August last year for European oil and since June for American oil. At the same time, the new trading week opened with a drop in prices to lows since December 2021.

Negative market sentiment is mainly due to concerns that the crisis situation in the US banking sector could trigger a recession in the US economy. Which, in turn, will lead to a decrease in fuel demand ahead of a potential increase in the US interest rate to curb inflation.