Global oil prices on Tuesday afternoon accelerated the decline, falling by almost 2%, according to trading data.

Price of Brent crude oil futures for May delivery is down 1.68%, to $79.42 per barrel, while WTI oil futures for April delivery is down 2.03%, to $73.27.

The oil market showed a noticeable price decline on Tuesday, which continues for a second consecutive day. Even in the morning this crude oil cheapened by only about 1% against the previous close. Now, counting from the beginning of the trading week, the cost of Brent oil has already fallen by 4.3%, and WTI – by 5%.

Events in the U.S. banking sector, which prompted investors to abandon investments in stocks and commodities because of fears of a recession in the U.S. economy put pressure on oil quotations.

Thus, on March 10, California state regulators closed Silicon Valley Bank (SVB), which is among the twenty largest commercial banks in the U.S. This was the largest bankruptcy of a bank in the U.S. since the financial crisis of 2008. Additionally, Signature Bank and Silvergate, a crypto-oriented bank, closed in the U.S. due to systemic risks.

We previously reported that OPEC kept the forecast of oil demand growth in 2023 at 2.3 mln bpd.