Credit Suisse unease sparks global selloff
Chinese economy shows signs of gradual recovery
China reopening expected to boost oil demand IEA

LONDON, March 15 Reuters Oil extended its slide on Wednesday, falling 4 and hitting its lowest in more than a year as unease over Credit Suisse spooked world markets and offset hopes of a Chinese oil demand recovery.

Early signs of a return to calm and stability faded after Credit Suisse39;s largest investor said it could not provide the Swiss bank with more financial assistance, sending its shares and other European equities sliding.

Fears of contagion are clearly gaining traction, Tamas Varga of oil broker PVM told Reuters. As a result, the dollar is stronger and equities are weakening bad omens for oil.

Brent crude fell 3.20, or 4.1, to 74.25 a barrel by 1333 GMT after touching 74.01 for its lowest since December 2021. U.S. West Texas Intermediate crude WTI was down 2.86, or 4, at 68.47, having also hit its lowest since December 2021.

Credit Suisse and broader banking fears are weighing heavily on sentiment, Craig Erlam of brokerage OANDA told Reuters. The outlook is suddenly highly uncertain and that39;s hitting oil prices in the short term.

Oil had rallied earlier on figures showing that China39;s economic activity picked up in the first two months of 2023 after the end of strict COVID19 containment measures.

On Tuesday both benchmarks shed more than 4 to threemonth lows, pressured by fears that the collapse of…