Oil prices slip amid ECB rate hike, rising banking tensions
pandemin


Oil prices continued their downward trajectory on Thursday amid European Central Bank (ECB) rate hike and rising tensions in the banking sector.
Brent crude futures (CO1:COM) stayed below the $75 mark, falling 1.4% to $72.64 a barrel. West Texas Intermediate crude futures (CL1:COM) also dropped $1.13 to $66.48 a barrel.
The S&P 500 Energy Index (SP500-10) was also down 2%, while sub-sectors Energy Equipment & Services (SP500-101010) and Oil & Gas Exploration & Production (SP500-10102020) registered 1.8% and 1.6% declines, respectively.
In a note to clients, analysts from Haitong Futures said: "Market sentiment deteriorated as the banking crisis expanded to Europe from the U.S. The future trend will depend on the level of market angst even if fundamentals are not necessarily showing much in the way of bearish signs."
Major energy decliners include: Halliburton (HAL) -3%, Schlumberger (SLB) -2%, Exxon Mobil (XOM) -3%, Chevron (CVX) -2%, Baker Hughes (BKR) -1.3%, Devon Energy (DVN) -2%, Transocean (RIG) -5%, ConocoPhillips (COP) -2%, PDC Energy (PDCE) -2%
ETFs: (USO), (BNO), (UCO), (SCO), (DBO), (USL), (DRIP), (GUSH), (USOI), (NRGU)
On Wednesday, oil and gas firms registered a decline as crude fell to a 15-month low amid the fallout of the banking sector. 
Oversupply concerns remain, with the International Energy Agency stating that commercial oil stocks in developed OECD countries have hit an 18-month high. The agency also acknowledged that Russian production has remained steady near pre-war levels.

"Building stocks today will ease tensions as the market swings into deficit during the second half of the year when China is expected to drive world oil demand to record levels," the IEA added.