Global oil prices fell to their lowest point in more than a year on Wednesday. The slump could be related to financial developments in the United States and Europe that also involve the Middle East.
The price of Brent crude oil, considered the global benchmark for oil prices, fell to below $72 at around 1 p.m. ET. By 4 p.m. ET, the price had rebounded to around $74.70. The last time Brent crude oil traded below $75 was in December of 2021, according to market data.
Why it matters: The price slump follows upheaval in international finance. Last week, the US-based Silicon Valley Bank and Signature Bank failed and were seized by authorities. Israeli tech firms notably had significant investments with Silicon Valley Bank.
Also on Wednesday, the Swiss investment bank Credit Suisse’s shares fell more than 20%. The Saudi National Bank announced it would not increase its 9.8% stake in response, citing new regulations that would kick in as a result.
Know more: The Saudi-led OPEC+ alliance announced in February it would keep oil production unchanged in a bid to maintain price stability. Earlier this month, The Wall Street Journal reported that the United Arab Emirates wanted to boost production and considered leaving the cartel due to Saudi Arabia’s opposition to this. The UAE subsequently denied the story.
OPEC+ will next meet to discuss oil production on April 3, according to CNBC.