Credit Suisse Woes Shake Global Markets: Commodities Prices Drop
Commodities prices dropped on Wednesday 15/March/2023, as concerns over Credit Suisse shook global markets and offset hopes of a recovery in Chinese oil demand. At the time of reporting on Thursday 16/March/2023, gold traded at $1917.34, silver at $21.721, US oil at $68.030, UK oil at $74.401, and the USD/NGN exchange rate stood at 460.9500 (official CBN rate).
Credit Suisse shares tumbled by 30 percent on Wednesday, after Saudi National Bank (SNB), its largest shareholder, stated that it could not provide further support. This announcement triggered a massive sell-off across different asset classes, with investors scrambling to exit risky positions.
According to Robert Yawger, director of energy futures at Mizuho in New York, "It doesn't matter what your risk asset is, at this point people are pulling the plug on across different instruments here. Nobody wants to go home with a big position on anything today...you have nowhere to hide really."
The slump in commodities prices is particularly concerning for Nigeria, as the current price of oil is now below the $75 benchmark set in the country's 2023 budget. As a major oil exporter, Nigeria heavily relies on oil revenues to fund its budget.
The outlook for commodities prices remains uncertain, as investors continue to monitor the situation at Credit Suisse and other global financial institutions.
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