Crude oil fell to a new low this year, and the price of bulk industrial products fell

May 29, 2024, 11:58 AM

TDDchem.com

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International oil prices have sharply declined, with WTI crude futures falling below $70 for the first time since December 2021. Factors such as the collapse of banks in Silicon Valley and oversupply in the oil market have contributed to this decline. Energy stocks were also affected, with major companies experiencing significant losses. Experts suggest that market anxieties may continue to influence oil prices.

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Under the impact of factors such as the collapse of banks in Silicon Valley and oversupply in the oil market, international oil prices have suffered a severe setback. On March 14th, international oil prices plummeted by more than 4%, hitting a new low in more than three months. On March 15th, WTI crude oil futures once fell below $70 in the intraday, hitting a new 14-month low. On the 16th, WTI April crude oil futures closed down 5.22%, plummeting nearly 8% during the session to close at $67.61 per barrel. Since December 2021, monthly contracts have closed below $70 for the first time. Brent May crude oil futures closed 4.85% lower at $73.69 per barrel, hitting a new closing low since December 2021.

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The cumulative decline in oil prices during the week exceeded 10%, and energy stocks were also dragged down across the board. Exxon Mobil fell 4.97%, Chevron fell 4.33%, ConocoPhillips fell 6.04%, Schlumberger fell 8.18%, and Western Oil fell 5.63%.

Regarding the collective decline in commodities, industry insiders have stated that the failure of Bank of America has triggered market concerns about the "Lehman crisis", and the rise in anxiety has directly triggered a decline in crude oil prices. In addition, if the expectations of the Federal Reserve's interest rate hikes are significantly reduced due to the impact of bank failures, the risk of imported inflation may also be reduced, and the expectations of a significant rise in the price of bulk industrial products may be reduced. Whether the prices of these industrial metals and bulk industrial chemicals will continue to decline in the future may depend on the Federal Reserve's interest rate hike policy, financial regulation, and subsequent rescue measures.