Oil declines amid bank concerns, US caution on stockpile refill

Oil fell, paring a weekly advance, as concerns over the banking industry simmered and the US signalled that refilling its strategic crude inventories would take longer than previously expected.

West Texas Intermediate declined toward $69 a barrel after on Thursday that ended with a drop.

Still, the US benchmark has risen by more than 4 per cent this week.

Malaise continues to hang over the US banking sector, despite an assurance of support from the authorities if warranted.

US Energy Secretary Jennifer Granholm said on Thursday that it will be “difficult” to refill government oil reserves this year.

The stockpile has been drawn down to the lowest level since the 1980s after the Biden administration ordered a release in the wake of the Ukrainian crisi.

Crude is on course for its steepest first-quarter drop since 2020, when the coronavirus pandemic eviscerated demand.

The slump has been driven by a potential US recession, robust Russian flows despite Western sanctions, and strikes in France.

Read: Oil spread slumps most since January

The US Federal Reserve hiked rates again this week to contain inflation, although some investors are betting that its tightening campaign is now close to an end.

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