Oil falls by more than two dollars due to fears of banking sector turmoil

On Monday, oil prices fell to a 15-month low amid fears that turmoil in the global banking sector could lead to a recession that would dampen demand for oil, as well as fears of a possible hike in interest rates in the United States this week.

Brent crude futures for May settlement fell $2.32, or 3.2 percent, to $70.65 a barrel by 0710 GMT. The contracts earlier fell to $70.56 a barrel, the lowest level since December 2021.

Brent plunged nearly 12 percent last week, its worst weekly performance since December.

US West Texas Intermediate crude for April delivery also fell $2.15, or 3.2 percent, to $64.59 a barrel. And it fell earlier to $ 64.51, and this was also its lowest level since December 2021.

WTI fell nearly 13 percent last week, its worst weekly performance since April.

April contracts will end on Tuesday, and the most heavily traded May futures contract also fell 3.2 percent to $64.81 a barrel.

The drop in oil prices comes despite reaching a historic deal under which Swiss bank UBS will acquire Credit Suisse, the second largest bank in the country, in an effort to stem the spread of the banking crisis.

After the deal was announced, the US Federal Reserve, the European Central Bank and other major central banks pledged to boost market liquidity and support banks.