SINGAPORE- Oil prices rose on Monday after suffering their biggest weekly loss in months as UBS struck a deal to buy Credit Suisse and some of the world’s largest central banks sought to reassure and stabilize global financial markets.
Brent crude futures rose 35 cents, or 0.5 percent, to $73.32 a barrel after a near 12 percent loss last week, its biggest weekly fall since December.
US West Texas Intermediate crude was at $67.11 a barrel, up 37 cents, or 0.6 percent, after a 13 percent decline last week, its biggest since last April.
Switzerland’s largest bank, UBS, announced late on Sunday it will buy the country’s No. 2 lender Credit Suisse in a historic deal. Following the announcement, the US Federal Reserve, European Central Bank and other major central banks pledged to enhance market liquidity and support other banks.
The Swiss bank deal and central banks’ measures to inject liquidity into the markets are restoring market confidence, leading to a relief rally in risk assets, including the crude markets, CMC Markets analyst Tina Teng said.
“The relief rally in broad markets may continue if the Fed softens its tone on rate hikes,” she added. -Reuters
