Oil rises as authorities rein in concerns about global banking system

London — Oil prices rose on Monday as investors assessed efforts by authorities to rein in concerns over the global banking system while Russian President Vladimir Putin’s plans to place tactical nuclear weapons in Belarus ratcheted up tensions in Europe.

Brent crude futures were up 30c, or 0.4%, to $75.29 a barrel at 0900 GMT. West Texas Intermediate US crude was up 28c, or 0.4% at $69.54 a barrel.

Brent rose 2.8% last week, while WTI rebounded 3.8% as jitters in the banking sector eased.

“Near-term oil prices are likely to remain volatile, influenced by the current financial market turmoil, but we retain a positive outlook,” said UBS analyst Giovanni Staunovo.

“We continue to expect rising Chinese crude imports and demand, plus lower Russian production, to tighten up the oil market and lift prices over the coming quarters.”

First Citizens BancShares said it will acquire the deposits and loans of failed Silicon Valley Bank, closing one chapter in the crisis of confidence that has ripped through financial markets.

There are also hopes for extra support for bank funding, after reports that US authorities were in early-stage deliberations about expanding emergency lending facilities.

Oil prices also drew support from Putin’s plans to station tactical nuclear weapons in Belarus.

The move is one of Russia’s most pronounced nuclear signals yet and a warning to Nato over its military support for Ukraine, which has called for a meeting of the UN Security Council in response. Nato slammed Putin for what it called his “dangerous and irresponsible” nuclear rhetoric.

Russia’s deputy Prime Minister Alexander Novak has said that Moscow is close to achieving its target of cutting crude output by 500,000 barrels per day (bpd) to around 9.5-million bpd.

But Russia’s crude exports are expected to stay steady as it cuts refinery output in April, data from industry sources and Reuters calculations showed on Friday.

Russia’s oil products exports have been hit harder than its crude exports by a recent EU embargo, with tonnes of diesel stuck on ships awaiting buyers.

Reuters