Analysts Expect Short-Lived Sell-Off in Crude Prices Amid Widening Banking Crisis
ANZ Bank Strategists Predict Tightening Market and Push for $100/bbl in Second Half of 2022
Crude prices have plunged this week as risk aversion escalates amid the widening banking crisis. However, strategists at ANZ Bank expect the sell-off to be relatively short-lived, with fundamentals pointing to a tightening market.
“For the moment, risks remain to the downside. We have subsequently trimmed our short-term (0-3M) target for Brent crude to $75/bbl.”
“We expect OPEC to keep the production cuts announced in late 2022 in place. Lower prices could also induce further demand, with the US to refill its strategic reserve.”
“As macro issues subside, we expect crude oil prices to push above $100/bbl in the second half of the year.”
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Market Updates: EUR/USD, GBP/USD, Gold Price, and Arbitrum
EUR/USD has regained its traction and turned positive on the day above 1.0600 following the inconsistent reaction to the ECB’s 50 bps hike and President Lagarde’s remarks on the policy outlook. Improving market mood seems to be weighing on the USD and helping the pair edge higher.
GBP/USD has gathered bullish momentum and rose above 1.2100 after having dropped below 1.2030 earlier in the day. The sharp rebound witnessed in Wall Street’s main indexes following the mixed opening doesn’t allow the USD to find demand and provides a boost to the pair.
Gold price reversed its direction and declined below $1,920 in the American session, erasing all of its daily gains in the process. The benchmark 10-year US Treasury bond yield recovered back above 3.5% on improving risk sentiment, weighing on XAU/USD.
Arbitrum, one of the largest Ethereum layer-2 scaling solutions, has announced its airdrop scheduled for March 23. The Arbitrum Foundation said that ARB will be airdropped to community members and DAOs.
CS stock rallied 8.3% to $2.34 early Thursday after the Swiss investment bank announced it could borrow up to 50 billion Swiss Francs (approximately $54 billion) from the SNB.