Oil prices maintained their downward trajectory on Tuesday amid fears that a fresh financial crisis in the United States following the collapse of Silicon Valley Bank (SVB) and Signature Bank would dent demand for fuel.
Traders also fretted about the prospect of higher interest rates leading to a recession.
Benchmark Brent crude futures fell 1.9 percent to $79.25 a barrel, while WTI crude futures were down 2.2 percent at $73.15.
Worries of a wider contagion persist despite the Biden administration assuring that there won't be a relapse of the financial crisis from 15 years ago.
Amid growing expectations for a pause in U.S. rate hikes, investors awaited the U.S. consumer price inflation report later in the day for further clarity on the rate outlook.
The consumer price index is expected to have risen by 6 percent year-over-year in February compared to 6.4 percent in January.
Some economists now expect no rate increase at all when the Federal Reserve delivers its interest-rate decision later this month.
Rate hike expectations for the ECB this week and the BOE next week have also been pared.
