After jitters initially on Monday the mood across financial markets has lifted in the wake of UBS’ takeover of Credit Suisse and after major central banks said they would enhance market liquidity and support the banking system.
The next focus for investors is the decision by the U.S. Federal Reserve on Wednesday on whether and by how much to raise interest rates when it concludes its two-day meeting.
Since the banking strife began this month, markets have revised down expectations for the next Fed rate hike to 25 basis points from 50 bps.
A meeting of key ministers from OPEC+, which includes OPEC members plus Russia and other allies, is scheduled for April 3. OPEC+ sources told Reuters the drop in prices reflects banking fears, rather than a worsening supply and demand balance.
Also coming into view is the latest U.S. oil inventory reports, which a Reuters survey expects to show lower crude and product inventories. The first report, from the American Petroleum Institute, is due out at 2030 GMT on Tuesday.