Oil set for worst week this year as bank turmoil takes its toll

​Oil headed for the biggest weekly decline this year after investor confidence plunged following the worst banking sector turmoil since the financial crisis.

Futures in New York were down about 10 per cent this week, even though they edged higher on Friday to pare some of the decline. The failure of Silicon Valley Bank and troubles at Credit Suisse Group AG, compounded by oil options covering, triggered a three-day rout earlier this week that sent prices to the lowest in 15 months.  

Some stability has returned to markets after banks including Credit Suisse and First Republic Bank received lifelines, with European equities higher and US index futures steady on Friday. The oil market also drew solace from Saudi Arabia and Russia's OPEC+ chiefs meeting to discuss efforts by the group to “promote market balance and stability.”