The impact of bank failures in the United States also weighed on the crude oil market, which saw the black commodity plummet on Tuesday.
Both the benchmark US WTI and Brent fell sharply around 3%-4% taking it to 3-month lows.
The shockwaves from the collapse of Silicon Valley Bank (SVB) have triggered a big move in bank stocks that has investors worried that the effects will spread more widely to the US economy.
It is important for investors to know, the US is the world's main consumer of oil and if the economy is affected, it can affect the demand and price of oil.
If the economy is weak, demand will decrease and oil prices will fall. On the other hand, the economy is strong, demand will increase and oil prices will rise.
Returning to the original title, the market situation then gradually calmed down after the US government announced aid and guarantee measures for affected banks.
As a result, oil prices stabilized again in today's trading session (Wednesday) which showed Brent oil futures trading at $78 per barrel and US WTI at $72 per barrel.
In the meantime, the American Petroleum Institute (API) report showed that US oil supply increased again by 1.15 million last week, while the inventory of fuel products continued to show a decrease.
