Oil moves within narrow range on supply concerns, banking sector fears

Oil prices moved in a narrow range during early Asian trading on Tuesday, after rising in the previous session, as oil markets focused on developments in the banking crisis, concerns about supply, and indications of increased demand.

Brent crude futures fell two years to $ 78.10 a barrel at 0018 GMT. The price of US West Texas Intermediate crude rose eight cents, or 0.1 percent, to $ 72.89 a barrel.

Prices rose during the previous session after Turkey stopped pumping crude from the Kurdistan region through a pipeline, after a ruling in an arbitration case confirmed that Baghdad’s approval was necessary to ship the oil.

The announcement of First Citizens Bankers Bank on Monday that it will take over the deposits and loans of the collapsed Silicon Valley Bank raised feelings of optimism about the situation of the banking sector, which sparked turmoil in the financial markets.

It was reported that the US authorities have begun deliberations on expanding the emergency lending facility.

Oil prices were supported by indications of strong Chinese demand.

An annual forecast issued by a research unit of the China National Petroleum Corporation on Monday indicated that China’s imports of crude oil are expected to rise 6.2 percent in 2023 compared to last year, to 540 million tons.

A preliminary poll conducted by Reuters showed that US crude oil inventories rose by about 200 thousand barrels last week.