Oil prices plunged by more than $5 a barrel today, Wednesday, to their lowest level in more than a year, as concern over Credit Suisse’s financial situation caused fears in global markets and outweighed hopes for a recovery in Chinese oil demand.
Brent crude futures fell $5.03, or 6.5%, to $71.98 a barrel by 1634 GMT. US West Texas Intermediate crude futures also fell $4.76, or 6.6 percent, at $66.58 a barrel, according to Reuters.
Both benchmarks lost more than 4 percent on Tuesday, hitting their lowest levels in three months, under pressure from fears that the collapse of Silicon Valley and another US bank would lead to a financial crisis that would affect fuel demand.
The dollar also rose against a basket of currencies, making buying dollar-denominated oil more expensive for holders of other currencies.
Government data showed that US crude stocks rose by 1.6 million barrels last week, which exceeded expectations by analysts in a Reuters poll, with an increase of 1.2 million barrels.
The monthly report of the International Energy Agency on Wednesday provided support by the expectation of an increase in Chinese demand for oil, a day after OPEC raised its forecast for Chinese demand growth for 2023.
