WTI rises on improving sentiment as Saudi-Russia meeting eased fears

• WTI recovers after falling 5% on Wednesday due to a risk aversion boost.
• OPEC: The fall of the week is due to the fact that sentiment has soured due to the turmoil in the financial market.
• Market sentiment improved thanks to the support of the Swiss authorities for Credit Suisse.

The Western Texas Intermediate (WTI), Benchmark US crude oil is gaining ground after falling to 15-month lows around $65.72 on the back of risk appetite. The Wall Street Journal (WSJ) reported that major US banks are stepping in to help First Republic Bank, a move encouraged by US stocks and oil prices. WTI is trading at $68.25, up 0.03% from its opening price.

The discussion between Saudi Arabia and Russia limited the fall of WTI

In addition to the aforementioned factors, WTI is being bolstered by reports that Saudi Arabia and Russia have met to discuss improving market stability. Saudi Energy Minister Prince Abdulaziz bin Salman and Russian Deputy Prime Minister Alexander Novak met in the Saudi capital to discuss the OPEC+ group’s efforts to keep markets balanced.

Delegates from the Organization of the Petroleum Exporting Countries (OPEC) and its allies told Reuters that “this week’s drop in oil prices to be driven by financial fears, not any imbalance between demand and supply, and expected for the market to stabilize.

The WTI fell due to the turbulence in the financial markets. Swiss authorities’ backing for Credit Suisse (CS) and reassurances from US Treasury Secretary Janet Yellen that the US banking system remained sound were a tailwind for WTI.

This week, both OPEC and the International Energy Agency (EIA) have forecast an increase in oil demand, but the market continues to be affected by concerns about excess supply.

The EIA commented that stocks in developed countries reached an 18-month high, while Russian production in February remained around known levels.

WTI Technical Levels