SINGAPORE Reuters - Oil prices climbed early on Monday as concerns over the banking sector calmed while comments by Russian President Vladimir Putin over the weekend ratcheted up geopolitical tensions in Europe.
Brent crude futures gained 33 cents, or 0.4%, to $75.32 a barrel at 0040 GMT. U.S. West Texas Intermediate crude was up 39 cents, or 0.6%, up 39 cents a barrel.
The dollar rose 2.8% last week, while the WTI rebounded 3.8% as jitters in the banking sector eased.
There has been a bounce in risk assets on the open this morning, more around the absence of any new bad banking developments over the weekend rather than any positive new developments as such, according to Tony Sycamore, IG analyst Tony Sycamore.
He said that the rise in oil prices was a relief rally and part of a correction after a 16% decline in the previous two weeks.
After President Vladimir Putin said he will station tactical nuclear weapons in Belarus, there were increasing geopolitical tensions in Europe over Ukraine.
NATO criticised Putin on Sunday for his dangerous and irresponsible nuclear rhetoric.
Russia's deputy prime minister Alexander Novak said on Friday that Moscow was very close to achieving its goal of reducing crude output by 500,000 barrels per day bpd to around 9.5 million barrels per day.
Russia is expected to maintain crude oil exports by cutting refinery output in April, according to industry sources and Reuters calculations on Friday.
Exports of Russian oil products have been more affected than crude exports because of a recent European Union embargo, with tonnes of diesel stuck on ships waiting for buyers.
Industrial action in France is disrupting refineries, reducing crude demand and fuel production.
The Chinese manufacturing and services PMIs are expected to be released later this week, according to investors.
If the data shows further recovery of the country's economic activities due to COVID disruptions, CMC Markets analyst Tina Teng said the data could be supportive for oil, if it shows further recovery of the country's economic activities from COVID disruptions.
In the U.S. oil rigs rose four to 593 for the first time in six weeks, while gas rigs held steady at 162, energy services firm Baker Hughes Co said in a report on Friday.