Oil prices fell in early Asian trade on Monday after Israel announced it had “ended” a series of attacks in southern Gaza. At 0135, US West Texas Intermediate crude futures were down 46 cents, or 0.6%, at $76.38 a barrel, while Brent crude was down 43 cents, or It was down 0.5% to $81.76.
Prices rose nearly 6% last week on geopolitical concerns, including the possibility of oil supply disruptions in the Middle East and fears of an Israeli-Palestinian conflict extending across the region. Days after the Israeli prime minister rejected a cease-fire offer, the Israeli military announced on Monday that it had carried out a “series of strikes” in southern Gaza that had now “ended.”
The number of oil and gas rigs operated by U.S. energy companies hit its highest level since mid-December, indicating an increase in production. Last week, domestic production reached 13.3 million barrels per day (bpd). . Rising interest rates inhibit economic expansion, which reduces demand for oil.
Trading in Asia is expected to be light during these hours due to the holiday closure of most regions including China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam and Malaysia. Mainland Lunar New Year holiday halts China’s financial markets; Trading will resume on Monday, February 19. Trade with Hong Kong will resume on February 14.
