On Monday, oil prices fell to the lowest levels in 15 months, as fears over risks in the global banking sector spiraling into a global recession gripped investors, and prompted concern a global recession could crush energy demand.
The global energy benchmarks fell roughly 3% on Monday, with Brent crude dropping to $70.80, and West Texas Intermediate (WTI) plummeting to $64.68 per barrel as of 11:00 GMT.
The fall in prices occurred despite indications that central banks are amping up their efforts to assist distressed banks in both the United States and the European Union.
Baden Moore, the head of commodity research at National Australia Bank, said, “The upcoming OPEC meeting is another potential catalyst on the outlook for the [oil] market. Further downside risk to prices increases the probability OPEC reduces production further to support prices.”
On April 3rd, there will be a meeting of a ministerial committee of OPEC and allied major producing nations including Russia, also known as OPEC+, where the declining price may now generate a reduction in production quotas.