Oil slumps 2% on concerns over US banking system

Oil drilling rigs

Oil prices closed lower today, March 13, as investors assessed the possibility of repercussions from the Silicon Valley Bank crisis.

International benchmark Brent crude fell 2.4% to close at $80.77 a barrel, after fluctuating between $83.48 and $78.34.

West Texas Intermediate (WTI) crude dropped 2.4% to $74.80 a barrel.

On March 12, US authorities announced efforts to boost confidence in the banking system.

The banking turmoil has added more volatility to the oil market, which has been affected this year by concerns about monetary tightening in the US.

Meanwhile, monthly reports from OPEC and the International Energy Agency are expected this week, and will help clarify the outlook on demand and supply in the market.