Oil holds decline amid concerns over outlook for Chinese demand

​Oil held a loss as concerns over China's economic outlook and caution in financial markets spurred by a banking crisis dominated sentiment.

West Texas Intermediate held above US$75 a barrel after dropping 1.5 per cent on Monday. China's recovery remains patchy with recent data pointing to a contraction in manufacturing. Still, tourism and travel activity soared on the first day of the country's five-day Labor Day holiday, possibly signaling increased demand for fuels in the world's largest crude importer.

In the US, JPMorgan Chase & Co. agreed to acquire First Republic Inc., the latest lender to fail. While the deal could help to stabilize the financial system, there are still concerns over the fate of other weak banks in the country.