Supervisor Elham AbolFateh
Editor in Chief Mohamed Wadie

Oil Prices Plunged 6% with Increasing Fears of Global Financial Crisis

Thu 16 Mar 2023 | 11:48 AM
Oil rig, snow winter, oil pump
Oil rig, snow winter, oil pump
Ahmed Moamar

Oil prices fell by about 6 percent, during yesterday's trading (Wednesday), to reach their lowest level in more than a year, as a concern related to the financial situation of Credit Suisse caused fears in global markets and outweighed the impact of hopes for a recovery in Chinese demand for oil.

Indications of a return to calm and stability faded after the National Bank of Saudi Arabia, the largest investor in Credit Suisse, said that it could not provide more liquidity to the Swiss bank, which led to a decline in its share and the broader European stocks.

The two raw materials thus reached their lowest level since December 2021, continuing their losses for three consecutive days. The dollar also rose against a basket of currencies, making buying dollar-denominated oil more expensive for holders of other currencies.

Oil prices rose earlier, thanks to figures showing a recovery in Chinese economic activity in the first two months of 2023, after the end of strict restrictions to contain "Covid-19".