Brent, U.S. crude hit lowest in 15 months on Monday
U.S. Fed begins twoday meeting on Tuesday
Oil drop is speculative, not based on fundamentals Andurand
U.S. crude, product stocks expected to drop in weekly reports

LONDON, March 21 Reuters Oil rose on Tuesday, extending a recovery from a 15month low hit the previous day, as the rescue of Credit Suisse eased worries about global banking sector risks that could hit economic growth and reduce fuel demand.

Sentiment across financial markets has improved following UBS39; takeover of Credit Suisse, announced on Sunday, and after major central banks said they would enhance market liquidity and support the banking system.

Brent crude was up 46 cents, or 0.6, at 74.25 per barrel at 1141 GMT. U.S. West Texas Intermediate WTI gained 15 cents, or 0.2, to 67.79.

Banking jitters may have taken a breather yesterday but remain in play, said Stephen Brennock of oil broker PVM.

Although an immediate crisis appears to have been averted there are still fears of another selloff.

The next focus for investors is the decision by the U.S. Federal Reserve on whether and by how much to raise interest rates when it concludes its twoday meeting.

Since the banking strife began this month, markets have revised down expectations for the next Fed rate hike to 25 basis points from 50 bps.

The dollar index steadied on Tuesday after hitting a fiveweek low in the previous session. A stronger dollar makes oil more expensive for holders of…