Oil holds on to losses on banking concerns

Oil held on to losses as worries about China’s economic outlook and cautious sentiment in financial markets triggered by the banking crisis took hold. U.S. crude fell 1.5 percent on Monday to settle below $76 a barrel. China’s recovery remains uneven, with recent data suggesting a manufacturing contraction. Still, tourism and travel activity rose on the first day of the country’s five-day Labor Day holiday, likely a sign of rising fuel demand in the world’s largest crude importer. In the U.S., JPMorgan Chase & Co. agreed to buy First Republic, the latest bank to go bankrupt. The deal should help stabilize the financial system, but there are still concerns about the fate of other weak banks in the country. Oil has lost more than 5 percent this year despite moves by the Organization of the Petroleum Exporting Countries and its allies to curb supply this week. A darkening economic outlook has added to the losses as central banks including the Federal Reserve continue to raise interest rates. The Fed is expected to make what is potentially its last hike of the current cycle this week.