Crude oil traded further lower on Monday after the market failed to capitalize on news of a coalition of global central banks to tackle the banking crisis.
At the opening of the European session, Brent crude oil futures traded down around $70 a barrel, while US WTI traded lower at $64 a barrel.
Early this morning, six global central banks including the Federal Reserve (Fed) and the European Central Bank (ECB) announced an agreement to increase the flow of US dollars in the global financial system.
This step is to restore investor and public confidence in the banking system that has collapsed since the recent collapse of Silicon Valley Bank and Signature Bank.
It is well known that crude oil is sensitive to negative news about the economy, so the global banking crisis also has an impact on the black commodity.
Turning to the XTI/USD price chart, the price has managed to break through the 66.00 support level that was tested several times over the past week.
If the decline continues, the price may head towards the level around 63.00 which was last touched at the end of November 2021.
Even so, if the price goes up again, the 66.00 level may be the focus to be tested again.
If the price manages to break through that level, the price may climb to the level of 69.80 which is the high level of last Friday.
