The North American benchmark West Texas Intermediate plunged more than four per cent on Wednesday to around US$68 per barrel. That’s the lowest crude price since December of 2021, and it sent oil and gas stocks tumbling, marking the third straight day of losses for the sector this week.
While the risk of a steep volatile sell-off was certainly there, “what no-one expected was a consecutive series of domino-effect bank failures,” Johnston said. “Now near the mid-$60s, WTI crude’s plunge is at the mercy of how much worse the macro picture gets.”Article content
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