⛽WTI drops to 15-month low and tests $70 area

🔽 Equities, oil and other risky assets plunged amid reignited concerns over banks

Markets were rather calm during the Asian session and as European cash sessions opened drew closer. However, things took a U-turn following European cash session launch with blue chips indices from the Old Continent as well as US index futures plunging. The moves are driven primarily by poor performance of European banking shares with EuroStoxx Banks index dropping over 7% on the day. European indices, like Italian FTSE MIB, Spanish IBEX or French CAC40, are trading almost 3.5-4.0% lower on the day while German DAX is dropping "only" 3%.

While reasons behind the drop - concerns over conditions of banks - come from stock markets, deterioration in market sentiment is not limited to equities. Other risky assets, like energy commodities and cryptocurrencies are also taking a hit.

Brent (OIL) and WTI (OIL.WTI) trade 1.5-2.0% lower on the day. Broad risk-off moods are the prime reason behind the move today but comments from IEA that Russia's high production leads to supply glut also played a role in the move lower. Taking a look at the OIL.WTI chart at D1 interval, we can see that price plunged below the $73.00 area, marking the lower limit of a recent trading range and moving towards early-December lows in the $70 area. Bears even managed to push the price below this hurdle, painting a fresh 15-month low! However, bulls have not given up yet and are trying to defend the zone.

OIL.WTI at D1 interval. Source: xStation5