The Oil markets experienced a massive risk aversion this week due to the re-emergence of banking fears. On Monday, JP Morgan agreed to take on deposit
The Oil markets experienced a massive risk aversion this week due to the re-emergence of banking fears. On Monday, JP Morgan agreed to take on depositors from First Republic Bank, but it wasn’t until Tuesday that the mood really shifted. As a result, regional banks such as PacWest Bancorp and Western Alliance saw their respective share prices plummet.
The Nasdaq regional banking index opened with a significant 3.3% gap down, reflecting the market’s pessimistic sentiment towards these banks. This return of banking turmoil, coupled with the FED’s recent interest rate hike, led to a significant risk-off move in crude Oil. The weight of the move was enough to overcome any support that OPEC’s recent supply cut formed.
WTI Oil Weekly Chart – The 200 SMA Held As Support
Oil continues to trade in the range
WTI
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