Brent crude oil prices ticked up 1% Thursday to hit $74 a barrel as markets cheered an announcement by Credit Suisse that it would accept a 50 billion Swiss Franc ($53.7 billion) loan from Switzerland’s central bank "to pre-emptively strengthen its liquidity.”
But compared with last Friday, Europe’s benchmark oil price is still down 10%.
Investors have been on edge over whether the collapse of Silicon Valley Bank in the United States could spark a banking crisis that would hurt the global economy.
West Texas Intermediate crude, the reference point for US oil prices, rose 0.8% in pre-market trade.
“Banking malaise has sparked worries about longer-term fortunes for the EU and US economies, particularly if financial institutions become more risk-averse in lending,” Susannah Streeter, head of money and markets at investing platform Hargreaves Lansdown, said in a Thursday note.
Credit Suisse raised alarm bells after revealing it needs a lifeline to stay afloat — one it has now accepted from the Swiss central bank."
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