Oil prices fell more than 2% at settlement in volatile trading on Monday as the collapse of Silicon Valley Bank disrupted stock markets and raised fears of a new financial crisis, although a rebound in Chinese demand provided support for crude.
Brent crude futures dropped by $2.01, or 2.4%, to $80.77. Earlier, the global benchmark fell to its lowest level of the session at $78.34, marking its lowest price since early January. West Texas Intermediate (WTI) crude futures declined by $1.88, or 2.5%, to $74.80 per barrel. Earlier, crude dropped to $72.30 per barrel, its lowest price since December.
U.S. authorities took emergency measures on Sunday to bolster confidence in the banking system after concerns about contagion from the Silicon Valley Bank collapse led to the selling of U.S. assets over the weekend, and regulators in the U.S. closed New York-based Signature Bank on Sunday.
