Crude oil futures settled deeply in red on Monday amid rising worries over a U.S. banking debacle following the collapse of Silicon Valley Bank (SVB). The sudden shutdown of SVB Financial triggered concerns about risks to other banks resulting from the U.S. Federal Reserve’s sharp interest rate hikes over the last year. However, the Biden administration has assured that there won't be a relapse of the financial crisis from 15 years ago. The U.S. Treasury, Federal Reserve, and Federal Deposit Insurance Corporation said they would fully protect depositors, including those with assets above the federally guaranteed $250,000 limit.
Benchmark crude oil futures for April delivery fell $1.88 or 2.4 percent to $74.80 a barrel on the New York Mercantile Exchange. Brent crude for May delivery dropped $2.01 or 2.43 percent to $80.77 a barrel on London's Intercontinental Exchange.