Despite Joe Biden’s pledge to support the nation’s banking systems, the collapse of Silicon Valley Bank in America caused the stock of international banks to decline. Signature Bank and First Republic Bank ran into serious situations following the failure of Silicon Valley Bank.
The chance of Russia and Ukraine being mediated for peace has increased as a result of Xi Jinping’s trip to Russia. China previously served as a mediator to restore relations between Iran and Saudi Arabia. Whether or not these talks will result in peace remains to be seen.
In the interim, the ongoing financial crisis in the USA prompted cooperation among the central banks of six different nations to support the USD’s position in the global financial system. The Bank of England’s statement includes mentions of the Bank of Japan, Bank of Canada, European Central Bank, Federal Reserve, and Swiss National Bank. To lessen the pressures on the world’s credit markets and to lessen their detrimental effects on the availability of credit to families and businesses, the six countries jointly took this action.
The combined effort of the banks caused oil prices to rise to USD 76. But even though America cautiously raised interest rates by about 0.25 percent to curb inflation, the fear of a repeat of the financial crisis of 2008 resulted in oil prices remaining stable in the range of 70 USD.
It is unclear whether central banks working together to make loans can stop the recession.
Despite Joe Biden’s pledge to support the nation’s banking systems, the collapse of Silicon Valley Bank in America last week caused the stock of international banks to decline.
Signature Bank and First Republic Bank ran into problems following the failure of Silicon Valley Bank.
In a different deal backed by the Swiss government, UBS Bank Switzerland agreed to acquire Credit Suisse Bank, uniting the two former rivals.
Iran is working to strengthen its political ties with other nations like the UAE and Iraq after relations with Saudi Arabia were restored. The effects of these political developments on the parity of the US dollar versus the Iranian rial must be observed over a longer period.
Global oil market price range
Singapore’s HSFO CST180 experienced significant changes over the past three days. It dropped to around 20 USD on Monday before rising to a new high of 18 USD on Tuesday, indicating market uncertainty. Bulk bitumen costs at the time were 480 and 425 USD, respectively, in Singapore and South Korea.
Bitumen in Bahrain is still costing around 325 USD.
While the market in Iran is closed for the New Year holidays, bitumen prices previously experienced a significant increase as a result of the decline in the value of the US dollar relative to the Iranian rial. During the New Year holiday, the market was shut down, and prices remained stable in their prior ranges. It appears that by the end of the holiday, the effects of recent incidents can be seen in the Iranian market.
Despite the current financial crisis, it appears that India will see bitumen prices rise again on April 1 after a 13 USD increase in mid-March. Lack of bitumen stock in India may be the cause.
It is advised that market activists closely monitor market updates and changes to make the best business decisions, especially given the New Year holidays in Iran, one of the biggest bitumen producers in Asia, and various regional and global crises.
