Oil declines as SVB's collapse reverberates through markets
BNN Bloomberg
Oil fell as the fallout from the collapse of Silicon Valley Bank — the worst since the 2008 financial crisis — rippled across markets.
U.S. authorities are rushing to strengthen confidence in the banking system and prevent contagion, while Goldman Sachs Group Inc. scrapped its call for a Federal Reserve interest-rate hike next week due to the turmoil. The dollar fell, providing a tailwind for commodities. U.S. equity futures pared gains and European stocks declined, highlighting an aversion to risk.
The turbulence has added further volatility to oil, which has been whipsawed this year by concerns over America's tightening monetary policy and optimism around China's economic recovery. Many market watchers are still bullish on the longer term outlook, with Saudi Aramco forecasting consumption will probably hit a record of 102 million barrels a day by the end of 2023.
