Fear returned to grip the financial markets, in Friday’s session, especially in Europe, where the banking sector continued to decline despite the statements of politicians who tried to reassure investors about the stability of the financial system. The banking sector in the broader Stoxx Europe 600 index declined by 3.53 percent after a sharp increase in the cost of insurance against default risks (CDS), which raised concerns about the resilience of European banks, led by Deutsche Bank.
Tony Sycamore, market analyst at IG, said the rise in oil prices was a comfortable recovery and part of a correction after a 16 percent drop in the past two weeks.
Prices also rebounded after Russian President Vladimir Putin said he would deploy tactical nuclear weapons in neighboring Belarus, escalating geopolitical tensions in Europe over Ukraine.
Russian Deputy Prime Minister Alexander Novak said on Friday that Moscow is very close to achieving its goal of reducing crude production by 500,000 barrels per day, to about 9.5 million barrels per day.
Data from industry sources and Reuters accounts showed on Friday that Russia plans to reduce refinery operations in April, allowing it to maintain crude oil exports while adhering to previously announced production cuts.
Looking at crude oil, Russian oil product exports have been hit hardest by far by the recent EU embargo, with tons of diesel on board ships waiting for buyers.
price move
Brent crude futures rose 61 cents, or 0.8 percent, to $75.61 a barrel by 0546 GMT. The price of US West Texas Intermediate crude was $69.89 a barrel, up 64 cents, or 0.9 percent.
Brent rose 2.8% last week, while WTI rose 3.8% after banking sector turmoil subsided.
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