The price of crude oil has fallen below $65 U.S. a barrel to reach its lowest level in 15 months as ongoing troubles in the banking sector renew fears of a global recession.
The price of West Texas Intermediate (WTI) crude oil, the U.S. benchmark, fell 2.8% to trade at $64.86 U.S. per barrel. Brent crude oil, the international standard, also declined 2.8% to $70.90 U.S. a barrel.
Brent and WTI crude oil are now trading at their lowest levels since December 2021. Both oil benchmarks have fallen more than 10% in the past week as a worldwide banking crisis worsened.
The slide in oil has continued despite a deal announced over the weekend that will see UBS (UBS), Switzerland's biggest bank, buy rival Credit Suisse (CS) for more than $3 billion U.S. in a takeover aimed at rescuing the troubled lender.
After the deal was announced, the U.S. Federal Reserve and European Central Bank each promised to enhance market liquidity and support other banks.
The U.S. Federal Reserve is expected to raise its key interest rate by another 25-basis points on March 22 despite the recent turmoil in the banking sector, according to various polls.
Separately, a ministerial committee of OPEC+ is scheduled to take place on April 3. The group agreed last October to cut oil production by two million barrels per day until the end of 2023.
