Oil gains some ground as investors assess banking crisis, Russia

Oil prices rose on Monday as investors assessed efforts by authorities to rein in worries about the global banking system, while Russian President Vladimir Putin's plans to place tactical nuclear weapons in Belarus ratcheted up tensions in Europe.

Brent crude futures climbed 77 cents, or 1.03%, to $75.76 a barrel at 0731 GMT. US West Texas Intermediate crude was up 74 cents or 1.03% at $70 a barrel.

Brent rose 2.8% last week, while WTI rebounded 3.8% as jitters in the banking sector eased.

Crude markets are watching the sentiment in the financial market, while oil fundamentals remain sidelined, said Vandana Hari, founder of oil market analysis provider Vanda Insights.

"Expect most price action in Brent and WTI futures to occur during the Europe and US trading hours, marked by plenty of intraday volatility," Hari said.

"A strong rebound is not on the cards until the (banking) crisis dissipates fully, which could take days, if not weeks."

In news from the banking sector, First Citizens BancShares Inc (FCNCA.O) said it will acquire the deposits and loans of failed Silicon Valley Bank (SIVB.O), closing one chapter in the crisis of confidence that has ripped through financial markets.

There are also hopes for extra support for bank funding, after reports that US authorities were in early-stage deliberation about expanding emergency lending facilities.

Oil prices also drew support from Putin's plans to station tactical nuclear weapons in Belarus.

The move is one of Russia's most pronounced nuclear signals yet and a warning to NATO over its military support for Ukraine, which has called for a meeting of the UN Security Council in response. NATO slammed Putin for his "dangerous and irresponsible" nuclear rhetoric.