New York, May 1 (EFE).- The price of Texas intermediate oil (WTI) started this Monday with a drop of 2.41%, up to 74.93 dollars a barrel, after the US authorities intervened and sold the First Republic bank to banking giant JPMorgan Chase.
At 9:00 a.m. local time (1:00 p.m. GMT), WTI futures contracts for June delivery were down $1.85 from the previous day’s close.
The US benchmark oil has been very sensitive to the financial storm that caused the fall of the Silicon Valley and Signature banks and that hit the First Republic Bank again last week, after it announced its quarterly results.
The US Federal Deposit Insurance Corporation (FDIC) reported in a statement that an agreement had been closed between JPMorgan and First Republic, and that “JPMorgan Chase Bank will assume all deposits and substantially all assets of First Republic Bank” .
Investors fear that these financial failures could be the prelude to an economic recession that would very possibly affect fuel consumption.
Last week, black gold closed its second consecutive drop and in the weekly computation it left 1.39%.
Investors are also paying close attention this week to the decision that the Federal Reserve will make regarding its policy of raising interest rates.
