Oil prices fell in light of market fears of banking crises

Oil prices fell on Monday, as did stocks, as the collapse of the Silicon Valley bank raised fears of a new financial crisis, but the recovery in Chinese demand provided some support.

By 1001 GMT, Brent crude futures fell $1.44, or 1.7 percent, to $81.34 a barrel. US West Texas Intermediate crude futures also fell $1.40, or 1.8 percent, to $75.28 a barrel.

Fears of a continuation of crises in the aftermath of the collapse of the Silicon Valley bank led to selling operations in US assets at the beginning of the week.

The banking sector fell on the European Stoxx 600 index 5.7 percent, after losing 3.8 percent on Friday. The US authorities launched emergency measures on Sunday to boost confidence in the banking system.

Market sentiment is fragile as rising US crude oil inventories fueled concerns that the US Federal Reserve could further tighten monetary policy, analysts at ANZ Bank said in a note on Monday morning.

A weaker dollar makes oil cheaper for holders of other currencies, which supports crude prices.