©Reuters.
Investing.com — Oil prices fell in Asian trade on Monday. That's as investors booked profits after last week's strong gains, with attention turning to further developments in the Israel-Hamas war and clues from major industry reports.
Trading volumes were low as markets were closed for the Lunar New Year in most parts of Asia.
Prices expiring in April fell 0.5% to $81.78 per barrel and fell 0.6% to $76.35 per barrel by 20:20 ET. Ta. Both contracts have risen about 5-6% over the past week.
Oil prices soared after Israel rejected a ceasefire offer from Hamas and continued deadly airstrikes on the Gaza Strip. The move shows little progress has been made in de-escalating the conflict, and traders have begun to price in a larger risk premium from the war.
The Israel-Hamas war has become a key point for oil aid in recent months, particularly as traders begin to price in the possibility of increased disruption to global oil supplies from the conflict.
Attacks in the Red Sea by the Iranian-aligned Houthis have also added to the disruption to shipping activities. The market was currently awaiting further signals from the region.
Concerns about the Middle East caused oil prices to rise significantly above the recovery in U.S. production, rising to record highs in February following production disruptions due to cold weather.
However, U.S. fuel supplies were tightened with several refineries remaining closed for maintenance. Prices rose nearly 9% last week, but questions remain as to whether that trend will continue as U.S. fuel demand is also expected to weaken due to the cold snap.
OPEC and IEA reports.US inflation accelerates this week
The Organization of the Petroleum Exporting Countries is scheduled to release its report on Tuesday and the International Energy Agency on Thursday.
In the market, there was some uncertainty as to whether the two countries would maintain their oil demand forecasts for 2024 and 2025, as demand pressure from US interest rates is expected to remain high for a long time in 2024.
Further clues about U.S. interest rates will also come from key inflation data released on Tuesday. U.S. inflation is expected to remain steady in January, a scenario that gives the Federal Reserve further impetus to keep interest rates steady for an extended period of time.
