Save for later Print Download Share LinkedIn Twitter Market attention has shifted from oil fundamentals to macro factors. Efforts to contain a banking crisis in the US and Switzerland seem to have stopped the bleeding but could well dry up more credit for the global economy and increase the risk of an economic recession in some regions. That, in turn, could lower oil demand growth. The financial realignment forced banks and funds to exit their oil bets, causing oil prices to plunge and the futures curve to weaken. With prices sinking, refiners limited buying, forcing spot prices down even more.
