Oil prices fall, record 12% weekly losses

Oil rigs

Oil prices fell more than 2% on Friday on renewed concerns about the banking system concerns and their repercussions on the global economy.

Bank stocks were the worst performers in the global markets as Silicon Valley Bank’s parent company filed for bankruptcy protection on Friday, this is alongside with renewed concerns about Swiss Credit Suisse.

The US drilling rig count fell one unit to 589 in the week ended March 17, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report.

Energy Aspects expects OPEC + will continue to monitor the market unless Brent crude falls below $70 a barrel for a long time, indicating that the organization will likely wait for financial markets to calm down after the banking sector scare.

Brent futures for May delivery settled 2.3% or $1.73 lower at $72.97 a barrel, with weekly losses of 11.8%.

West Texas Intermediate (WTI) crude for April delivery also ended 2.3% or $1.61.