2023.03.2009:58:00UTC+00Oil Prices Extend Losses On Banking Concerns

Oil prices fell more than 2 percent on Monday to reach their lowest level in 15 months as investors fretted about the banking chaos leading to a financial crisis or a recession.

Benchmark Brent crude futures fell 2.4 percent to $71.22 a barrel, while WTI crude futures were down 2.4 percent at $65.34.

Brent contract plunged almost 12 percent last week, marking its biggest weekly fall since December. Likewise, WTI contract plummeted 13 percent, marking its biggest weekly loss since last April.

Fears over banking crisis persist despite UBS agreeing to acquire troubled Swiss bank Credit Suisse in order to stem global financial turmoil.

In another development, New York Community Bank NYCB agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal.

Amid rising worries about economic growth and the outlook for energy demand, investors also shifted focus to an upcoming OPEC meeting and the Fed's interest-rate decision for direction.

The Federal Reserve will announce its latest monetary policy decision on Wednesday, with analysts expecting a 25-bps rate hike.

A ministerial committee of OPEC and producer allies including Russia, known as OPEC+, is set to meet on April 3, with a full ministerial meeting planned for June 4.