Oil lower as banking turmoil holds down sentiment

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Oil lower as banking turmoil holds down sentiment
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Oil drifted lower on Tuesday as more than a week of banking turmoil kept weighing on market confidence.

Brent crude futures for May settlement dropped 71 cents, or 1%, trading at $73.08 per barrel at 0514 GMT. U.S. West Texas Intermediate crude futures were down 74 cents, or 1.1%, to $66.90 a barrel.

The April WTI contract will expire on Tuesday. The May contract, now the most active, fell 64 cents, or 0.9%, to $67.18 a barrel. One influence will be the decision by the Federal Reserve on whether and by how much to raise interest rates after concluding a two-day meeting on Wednesday. OPEC+, which includes the world's top oil exporting countries and allies including Russia, is set for a meeting on April 3. The group agreed in October to cut the target for daily oil production by 2 million barrels until the end of 2023.2.1 million barrels per day on average so far this month, spurred by a drop in the WTI price relative to Brent and by weaker oil demand by U.S. refineries.

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