US dollar falls after SVB bankruptcy
Oil prices dropped as the market fallout from Silicon Valley Bank’s failure, the worst since the 2008 financial crisis, rippled across the globe.
Underscoring their risk aversion were the dollar’s decline, US stock futures cutting gains, and European markets falling.
By the end of the year, oil consumption will have reached all-time highs.
The turmoil increased the volatility of oil prices, which have fallen this year on concerns about the Fed’s tightening of monetary policy and hope for a resurgence in China’s economy.
Due to the collapse of the SVB, which caused some investors to insure against the danger of decreasing oil prices, traders are paying high premiums for bearish put options. Last week, the put premium on bullish calls reached its highest level since November.