Oil prices climb 2.5% as banking concerns recede

Oil prices rose 2.5% in European trade, moving off 15-month lows for the second session as concerns about the global banking concerns subside. 

Prices were also boosted by dollar's decline ahead of the Federal Reserve's policy meeting, expected to end with another rate hike. 

Global Prices

US crude rose 2.5% to $69.49 a barrel, while Brent  added 2.4% to $75.34 a barrel. 

On Monday, US crude rose 2.3% away from 15-month lows at $64.41, while Brent climbed 1.7% to $70.17 a barrel off December 2021 lows. 

Subsiding Banking Concerns

Market sentiment was boosted after UBS's acquisition of Credit Suisse in a 3 billion franc deal. 

Major global central bank, led by the Federal Reserve, banded in vowing to provide enough liquidity to support the banking system. 

OPEC+

OPEC+ ministers will convene on April 3, with a possibility of changing production recommendation. 

However, it's likely that OPEC+ will wait out the global turmoil before taking an action to support the market. 

The Dollar

The dollar index fell 0.3% today, sharpening losses for the fourth session and hitting five-week lows at 103.02 against  a basket of major rivals, underpinning dollar-denominated oil futures. 

The dollar is dipping as haven demand declines on the greenback, and ahead of the Fed's policy meeting, expected to end with the last US rate hike this year. 

American Petroleum Institute 

Initial data on US crude stocks will be released later today from the API, expected to show a buildup for the second week in a row.