Oil prices fell around 2 percent on Monday as investors fretted about contagion effects to other banks and the tech and start-up industry post the collapse of Silicon Valley Bank (SVB) and Signature Bank.
Brent crude futures fell a little over 2 percent to $81.11 per barrel, while WTI crude futures were down 2 percent at $75.12.
Markets continue to worry about contagion effects despite U.S. regulators rushing to contain the fallout.
Investors are waiting to see whether the SVB collapse was a systematic event, or a one-off.
The U.S. dollar yield slid, and global bond yields collapsed as new concerns surrounding the U.S. banking sector raised expectations for a potential pause in further interest-rate hikes by the Federal Reserve.
Investors were also reacting to reports suggesting that Argentina's state oil company YPF will double oil output and pump-up natural gas by 30 percent in the next five years.
