Oil was perhaps the biggest collateral victim as the banking drama spread from California to Switzerland in recent days. In just over a week, Brent has fallen $10 a barrel, or around 15%. The speed and scale of the sale some investors ask: Where is OPEC+? The oil cartel is, for now at least, in a wait-and-see mode and unlikely to act until the Federal Reserve completes its next monetary policy meeting on March 22.
Over the past few hours, the message I’ve heard from the oil capitals is “don’t panic”. Maybe the group is just putting on a brave face, buying time before they need to act. Maybe. As Brent and West Texas Intermediate prices fell sharply, OPEC+ delegates are still encouraged by what they describe as robust Asian demand. China is on the mend and India is buying a lot.