Oil prices edged higher on Monday as concerns about the U.S. banking system eased after U.S. government officials pledged to take the necessary steps while the Russian president's latest remarks on nuclear weapons raised supply-side concerns.
International benchmark Brent crude traded at $75.35 per barrel at 09.57 a.m. local time (0657 GMT), a 1.01% increase from the closing price of $74.59 a barrel in the previous trading session.
At the same time, American benchmark West Texas Intermediate (WTI) traded at $70.06 per barrel, a 1.15% rise after the previous session closed at $69.26 a barrel.
St. Louis Fed President James Bullard stated on Friday that U.S. regulators were prepared to take additional action in response to the sudden failure of multiple banks in the U.S., reducing the possibility of a crisis spillover effect.
However, as long as high inflation rates are still on the table with unfolding interest rate hikes in major economies, fears of a global economic recession that would weaken oil demand continue to put downward pressure on oil prices.
Meanwhile, price upticks were also supported after Putin announced on Saturday that Russia will complete construction of a special storage facility for tactical nuclear weapons in neighboring Belarus, sparking concern and condemnation from Ukraine and its Western allies.
However, Daniel Hynes, commodity strategist at Australia and New Zealand Banking Group, said in an email that he was cautious of a full economic rebound in China.
"The market is still waiting for a rebound in economic activity in China," he said, adding that "while travel has picked up sharply, consumer spending has remained subdued."
