Oil regains some ground after Credit Suisse lifeline

Oil prices recovered some ground on Thursday, rising from the previous session’s 15-month lows, as markets settled considerably after Swiss authorities threw Credit Suisse a financial lifeline.

But, market mood remained weak, damaged by concerns about mounting stress on banks throughout the world, and both major crude benchmarks gave up some of Thursday’s early gains.

At 1105 GMT, Brent crude futures were up 54 cents, or 0.7%, to $74.23 per barrel. WTI oil futures (WTI) increased 43 cents, or 0.6%, to $68.04.

On Wednesday, the third consecutive day of losses, US oil went below $70 a barrel for the first time since December 20, 2021.

Brent has lost nearly 10% since Friday’s close while U.S. crude is down about 11%.

“Oil dropped below $70 a barrel amid fears of a second financial crisis hurting the demand outlook,” said City Index analyst Fiona Cincotta. “Today the market mood has improved after Credit Suisse was thrown a financial lifeline.”

Credit Suisse said on Thursday that it would borrow up to $54 billion from the Swiss central bank to shore up its liquidity and investor confidence after a slump in its shares intensified fears about a global financial crisis.

Those fears could crowd out inflation worries when European Central Bank policymakers meet on Thursday, possibly forcing them to ditch plans for a hefty interest rate hike that could slow economic growth and dent oil demand.