LONDON—Oil prices dropped more than $2 a barrel on Tuesday, extending the previous day’s slide, as the collapse of Silicon Valley Bank rattled equities markets and sparked fear about a fresh financial crisis.
Brent crude futures fell $1.64, or 2 percent, to $79.13 a barrel by 1001 GMT. U.S. West Texas Intermediate crude futures (WTI) dropped $1.74, or 2.3 percent, to $73.06 a barrel. On Monday, Brent and WTI fell to their lowest since early January and December, respectively.
Oil prices dropped alongside a continued slide in equities markets.
“We see Monday’s developments around the regional U.S. banks as more noise than news for commodity markets, and it should not have any meaningful medium- to longer-term impact,” said UBS analyst Carsten Menke….