March 20 (Reuters) -ICE cotton futures slipped to a near 20-week low on Monday, tracking losses in oil prices and the grains market, amid an international banking crisis that overshadowed support from a weaker dollar.

* Cotton contracts for May CTc1 fell 0.27 cent, or 0.4%, to 77.59 cents per lb by 1:15 p.m. ET (17:15 GMT), reversing earlier gains of as much as 2.1%.

* "There's a lot of selling interest in a lot of commodities, including agricultural commodities and the energy markets," said Jack Scoville, vice president at Chicago-based Price Futures Group, citing pressure from the international banking crisis.

* Oil prices dropped to their lowest levels in 15 months before paring losses as the market digests concerns that risks in the global banking sector could spark a recession that would sap fuel demand. Lower oil prices make polyester, a cotton substitute, cheaper. O/R

* "Cotton is usually a bit more susceptible to some of that negativity than other agricultural markets just considering the size," said Bailey Thomen, cotton risk management associate at StoneX Group.

* Chicago Board of Trade grain futures fell after a deal to export grains by sea from Ukraine was extended, allowing the flow of crops to global buyers. GRA/

* Offering some respite, the dollar .DXY fell 0.3%, making the natural fiber cheaper for overseas buyers. USD/

* "Earlier, we saw some support on signs that demand is starting to pick up a little bit," said Scoville, about prices previously rallying 2.1% in the session before falling.

* Sentiment also spilled over from Wall Street, where the S&P 500 and the Dow Jones gained as a state-backed rescue of embattled lender Credit Suisse helped calm some jitters around a bigger banking crisis. .N

Reporting by Deep Vakil in Bengaluru; Editing by Shilpi Majumdar