POLLU.S. crude stockpiles seen up, products likely down
Coming up API data on U.S. stockpiles, U.S. CPI data
OPEC oil market report due later on Tuesday

LONDON, March 14 Reuters Oil prices dropped more than 2 a barrel on Tuesday, extending the previous day39;s slide, as the collapse of Silicon Valley Bank rattled equities markets and sparked fear about a fresh financial crisis.

Brent crude futures fell 1.64, or 2, to 79.13 a barrel by 1001 GMT. U.S. West Texas Intermediate crude futures WTI dropped 1.74, or 2.3, to 73.06 a barrel. On Monday, Brent and WTI fell to their lowest since early January and December, respectively.

Oil prices dropped alongside a continued slide in equities markets.

We see Mondays developments around the regional U.S. banks as more noise than news for commodity markets, and it should not have any meaningful medium to longerterm impact, said UBS analyst Carsten Menke.

The sudden shutdown of SVB Financial triggered concerns about risks to other banks resulting from the U.S. Federal Reserve39;s sharp interest rate hikes over the last year.

Traders now no longer expect a 50basis points bps rate hike next week, with a current projection of a 25 bps rise, even ahead of the release of U.S. consumer price data on Tuesday.

A lower rate rise could mean the dollar weakening which in turn is a bullish signal for oil prices.

Economists surveyed by Reuters forecast consumer prices increased by 0.4 in February, which would lower the yearonyear…