Oil continues slide on recession fears over banking risks

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Oil continues slide on recession fears over banking risks
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The fall comes despite a deal in terms of which UBS will buy Credit Suisse in an effort to stop a crisis from spreading

Singapore — Oil prices fell on Monday for a second session on concerns that risks in the global banking sector may cause a recession that would lead fuel demand to decline and before a potential interest rate hike by the US Federal Reserve this week.

The slide in oil comes despite a historic deal in terms of which UBS, Switzerland’s largest bank, will buy the country’s No 2 lender, Credit Suisse, in an effort to stop a banking crisis from spreading. “The upcoming Opec meeting is another potential catalyst on the outlook for the market. Further downside risk to prices increases the probability Opec reduces production further to support prices,” Moore added.

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