Oil rises as concerns about banking sector turmoil recede

Oil prices rose in early trade on Monday as concerns about turmoil in the banking sector eased.

Brent crude futures rose 33 cents, or 0.4 percent, to $75.32 a barrel by 0040 GMT. The price of US West Texas Intermediate crude was $69.65 a barrel, up 39 cents, or 0.6 percent.

Brent rose 2.8% last week, while WTI rose 3.8% after banking sector turmoil subsided.

Tony Sycamore, market analyst at IG, said the rise in oil prices was a comfortable recovery and part of a correction after a 16 percent drop in the past two weeks.

Prices also rebounded after Russian President Vladimir Putin said he would deploy tactical nuclear weapons in neighbouring Belarus, escalating geopolitical tensions in Europe over Ukraine.

Russian Deputy Prime Minister Alexander Novak said on Friday that Moscow is very close to achieving its goal of reducing crude production by 500,000 barrels per day, to about 9.5 million barrels per day.

Data from industry sources and Reuters accounts showed on Friday that Russia plans to reduce refinery operations in April, allowing it to maintain crude oil exports while adhering to previously announced production cuts.

Looking at crude oil, Russian oil product exports have been hit hardest by far by the recent EU embargo, with tons of diesel on board ships waiting for buyers.