*
Saudi, Russia committed to OPEC+ production cuts -Saudi
media
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Financial markets recover as Credit Suisse gets lifeline
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Yellen assures lawmakers U.S. banking system is healthy
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Oversupply concerns, interest rate hikes weigh on market
(Updates with settlement prices)
By Shariq Khan
BENGALURU, March 16 (Reuters) - Oil prices settled 1%
higher on Thursday, ending a three-session losing streak, after
reports that Saudi Arabia and Russia met to discuss ways to
enhance market stability.
Brent crude futures rose $1.37, or 1%, to settle at
$74.70 a barrel, while the West Texas Intermediate crude futures
(WTI) gained 74 cents, or 1.1%, to settle at $68.35 a
barrel.
Saudi state media reported that the country's 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 maintain market balance.
Both countries remain committed to OPEC+'s decision last
October to cut production targets by two million barrels per day
until the end of 2023, the reports stated.
"That news woke up the bulls in the market, and it was kind
of expected with the sell-off that we have seen over the past
few sessions," said John Kilduff, partner at Again Capital.
Earlier in Thursday's session both contracts had dropped by
more than $1 a barrel to near 15-month lows. On Wednesday, U.S.
crude fell below $70 a barrel for the first time since Dec. 20,
2021.
Oil prices were also supported by a broader recovery in
financial markets after Credit Suisse was thrown a
lifeline by Swiss regulators, and U.S. Treasury Secretary Janet
Yellen assured lawmakers that the U.S. banking system remains
sound.
The dollar weakened on Thursday, making
greenback-denominated oil cheaper for holders of foreign
currencies and boosting demand.
Both OPEC and the International Energy Agency (IEA) have
this week forecast stronger oil demand, but oversupply concerns
continue to weigh on the market.
The IEA said commercial oil stocks in developed OECD
countries had hit an 18-month high while Russian oil output in
February stayed near levels registered before the war in
Ukraine, despite sanctions on its seaborne exports.
"Market sentiment remains fragile as investors continue
to weigh up the latest developments in the banking sector both
in the U.S. and in Europe," said Fiona Cincotta, Senior
Financial Markets Analyst at City Index.
The European Central Bank's decision to hike interest rates,
as expected, also weighed on oil prices.
Oil trading will continue to be volatile, especially if
other central banks persevere with rate hikes, said Craig Erlam,
analyst at OANDA.
"Authorities may have thrown their support behind the
banking sector while managing the collapse of the mid-tier
institutions in the U.S. but traders are far from convinced that
the worst is behind us," Erlam said.
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Crude oil price fall ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Shariq Khan
Additional reporting by Ahmad Ghaddar, Muyu Xu; Editing by
Elaine Hardcastle, David Gregorio and Susan Fenton)
