Oil prices turned lower on Tuesday as the turmoil, which has ravaged the banking sector for more than a week, continues to weigh on market sentiment.
Brent crude futures for May delivery fell more than 1 percent to $73.05 a barrel by 07:24 GMT.
U.S. West Texas Intermediate crude futures fell about 1% to $67.13 a barrel.
In the previous session, Brent and WTI fell around $3 a barrel before closing higher.
The US crude contract for April expires on Tuesday, and May is the most active contract for that crude.
This week, a research note from US investment bank Goldman Sachs showed a cut in its estimate of crude oil prices in 2023, amid fears of recession and financial crisis at global banks.
The bank said in its note that Brent prices could average $94 per barrel over the next 12 months, down from an average of $100 in an estimate issued in January.
Concerns
Shares of major U.S. banks closed higher on Monday, but fears of bankruptcy of other banks remain, notably First Republic Bank.
Global financial markets have fallen since the beginning of last week's trading, and so far the majority of declining companies have not recovered their levels recorded at the beginning of March.
Meanwhile, officials from the Group of Seven major industrialized nations said the group was unlikely to revise the $60 ceiling on the price of Russian oil as planned.
The European Commission informed EU ambassadors earlier this week that there was no urgent desire among the group for an immediate review, the officials said.
OPEC Plus (OPEC+), which includes the world's largest oil exporters and allies including Russia, is scheduled to hold a meeting on April 3.
The group agreed in October to cut oil production targets by 2023 million barrels per day until the end of <>.