(Bloomberg) -- Oil held a loss as concerns over China’s economic outlook and caution in financial markets spurred by a banking crisis dominated sentiment.

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West Texas Intermediate traded near $75 a barrel after dropping 1.5% 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. agree 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.

Oil has dropped more than 5% this year despite a move by Organization of Petroleum Exporting Countries and its allies to cut supply. Losses have been spurred by a darkening economic outlook, with major central banks including the Federal Reserve continuing to raise borrowing costs. The Fed is expected to deliver another hike this week, potentially its final rise in the current cycle.

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