Ammon News - Oil prices settled lower Friday, reversing early gains of more than $1 a barrel as banking sector fears caused both benchmarks to reach their biggest weekly declines in months.

Brent crude futures settled down by $1.73, or 2.3%, to $72.97 a barrel. U.S. West Texas Intermediate crude fell $1.61, or 2.4%, at $66.74.

At their session low, both benchmarks were down more than $3. Brent fell nearly by 12% in the week, its biggest weekly fall since December. WTI futures fell 13% since Friday's close, its biggest since last April.

Prices had recovered some ground after support measures from the European Central Bank and U.S. lenders, but dropped again when SVB Financial Group (SIVB.O) said it had filed for reorganization.

OPEC+ members attributed this week's price weakness to financial drivers rather than any supply and demand imbalance, adding that they expected the market to stabilise.

WTI's fall this week to less than $70 a barrel for the first time since December 2021 could spur the U.S. government to start refilling its Strategic Petroleum Reserve, boosting demand.

And analysts expect China's demand recovery to add price support, with U.S. crude exports to China in March heading towards their highest in nearly two and a half years.