Oil Advances as US Seeks to Calm Markets After Banking Turmoil - Yahoo Finance

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(Bloomberg) -- Oil climbed at the start of the week as US regulators moved to assure depositors their money is safe following trouble in the banking sector, easing concerns about the turmoil rippling across markets.

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West Texas Intermediate rose for a second day toward $77 a barrel. Treasury Secretary Janet Yellen approved the actions, which enable the Federal Deposit Insurance Corp. to resolve Silicon Valley Bank “in a manner that fully protects all depositors,” according to a joint statement with the Fed and FDIC.

The unraveling of SVB is the biggest US bank collapse since the 2008 financial crisis and was driven in large part by the fallout from higher interest rates. The Federal Reserve has flagged further monetary tightening to come.

Oil has had a bumpy year, whipsawed by concerns over more rate hikes and optimism around China’s economic recovery. Consumption will probably hit a record of 102 million barrels a day by the end of 2023, Saudi Aramco Chief Executive Officer Amin Nasser said Sunday, after the company reported a blowout annual profit and unexpectedly raised dividends.

China snapped up at least 6 million barrels of mostly sour grades from the US and Canada recently, adding to signs of a robust rebound from the top importer. The nation ended its Covid Zero policy late last year.

The Organization of the Petroleum Exporting Countries and the International Energy Agency are scheduled to release monthly market reports this week, providing investors with a snapshot on the outlook for supply and demand.

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