Investing.com — Oil prices fell below key levels on Tuesday and were nursing heavy losses from the past session as ructions in the U.S. banking sector brewed increased concerns over a potential economic crisis, with focus now turning to more cues from inflation data due later in the day.

Crude prices sank between $2 and $3 on Monday as markets feared a spillover from the collapse of Silicon Valley Bank (NASDAQ:SIVB) into the broader economy, even as the U.S. government intervened in the sector to limit any potential fallout.

Crude markets saw increased volatility as markets weighed a potential economic crisis against the prospect of the Federal Reserve softening its hawkish rhetoric to prevent further damage.