Oil falls a dollar amid concern in financial markets after SVB

Oil prices fell by more than a dollar on Tuesday, extending losses for the second session, as the collapse of the Silicon Valley bank shocked stock markets and raised fears of a new financial crisis.

Brent crude futures fell 87 cents, or 1.1 percent, to $79.90 a barrel by 0345 GMT. West Texas Intermediate crude futures fell 85 cents, or 1.1 percent, to $73.93 a barrel. On Monday, Brent fell to its lowest since early January, while WTI fell to its lowest since December.

The sudden closure of SVB Financial Group raised concerns about the risks other banks face due to sharp waves of interest rate increases approved by the Federal Reserve over the past year. It also sparked speculation about whether the central bank would slow down the pace of monetary tightening.

And the US authorities launched emergency measures on Sunday to boost confidence in the banking system after fears of contagion from the collapse of the Silicon Valley bank led to a wave of selling in US assets at the end of last week, and regulators closed the New York-based Signature Bank on Sunday.

The American Petroleum Institute is expected to release US oil inventories data on Tuesday.

Six analysts polled by Reuters expected an increase in US crude stocks by around 600,000 barrels in the week ending March 10.