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WTI (US oil) has fallen below USD 70 per barrel as a result of the third straight day of losses in crude oil prices. The fall of SVB and financial instability have added to the current slump, which has been masked by dimming growth expectations and increased supplies.

Although US authorities have tried to palliate concerns about a wider banking sector infirmity, the financial crisis at the Swiss bank Credit Suisse offers an additional danger to the world economy.

Currently, crude oil prices are experiencing their third straight decline. The supply of oil reached an 18-month high at the same time as the IEA (International Energy Agency) recorded an increase in oil stockpiles.

These worries were reflected in the weekly EIA report, which showed that US stocks increased by 1.55 million barrels last week, more than the projected 1.188 million.

Energy Information Administration earlier today issued weekly data that revealed a rise in the number of commercial barrels of oil held by US companies.

Technical analysis of US crude oil (WTI)

US Oil extended losses, breaking previous support, holding at the crucial psychological level of USD 70.00, as fundamentals continued to dampen the market sentiments. The commodity channel index has entered the oversold territory with prices currently trading about 5% down on the day and a weekly fall of over 12%.

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At USD 66.00, the 200-week MA is indeed a support level after being approached by the price decline.

Crude Oil: Price Trend and Forecast

North America

Recently, discussions about restricting the price of Russian crude oil and a negative market outlook led to a continuous decline in crude oil prices. From the start of the Russia-Ukraine war, Europe and America have been trying to punish Russia by imposing sanctions and a ban on imports and exports.

The Strategic Petroleum Reserve (SPR) hit its lowest point as a result of declining American inventories, nevertheless. The ice storm Elliot, which swept over North America just before Christmas, did, however, have an effect on the operations of many refineries.

APAC

OPEC+ summit gains have recently been overshadowed by recent fluctuations in the price of crude oil. Amid growing concerns about a global economic slowdown, China, the world's largest consumer of crude oil, was foreseeing decreasing gasoline demand.

In the meantime, it was noted that both benchmarks fell back-to-back during the second half following concerns that the US government could release oil from its strategic petroleum reserves to stifle the rising crude oil offers on the worldwide market.

Nonetheless, some market participants thought that the shift in market sentiments had briefly affected the Crude Oil trend, causing Crude Oil to fluctuate.

Europe

Crude oil prices have been falling globally recently. The debate over capping the price of Russian crude oil had an impact on the product's pricing dynamics in the international market and contributed to the upbeat mood of the market.

According to the sources, US inventories were at a five-year low at the end of the fourth quarter, which had an impact on the prognosis for the Crude Oil market.

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The notion of restricting Russian crude oil was also suggested by significant oil producers and consumers. But Moscow had earlier cautioned these countries against doing so and encouraged them to prepare for the repercussions.

As per Procurement Resource, due to an increase in supply and financial instability, crude oil prices have fallen to a 15-month low. As a result of crude oil prices declining for the third straight day, WTI (US oil) has dropped below USD 70 per barrel.

The current downturn, which has been obscured by lower growth projections and more supplies, has been made worse by the collapse of SVB and financial turmoil. Despite efforts by US authorities to ease worries about a wider banking sector corruption, the Credit Suisse financial crisis poses an additional threat to the global economy.