The price of oil fell by about 0.7%, helped by news from Israel, the strengthening of the US dollar and partial profit-taking ahead of the publication of numerous reports on the oil market.
Israel said on Sunday it was withdrawing some troops from the southern Gaza Strip, with the forces recuperating and preparing for future operations, including an offensive on Rafah. But since this event did not bring any fundamental changes, the pullback in oil prices may be temporary. In addition, Iran is preparing a response to an alleged Israeli attack on its consulate in Syria, which could lead to an escalation of tensions in the region.
Meanwhile, the world's top oil exporter, Saudi Arabia, raised official selling prices for all crude grades to Asia in May, in line with expectations, after heavy oil supply tightened.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.12% to 104.42.
As for the oil market reports, the U.S. Energy Information Administration will publish its Short-Term Energy Outlook tomorrow. Reports from OPEC and the International Energy Agency will also be released this week. Experts said that a lot of data and comments will help determine the prospects for the global oil balance. According to Goldman Sachs forecasts, the price of Brent crude oil will remain below $ 100 per barrel in the baseline scenario, which assumes already steady demand, the absence of further geopolitical problems with oil supplies and the fact that an increase in reserve capacity will lead to an increase in OPEC+ oil production in the third quarter.
Investors will also pay attention to US and Chinese inflation data to get new clues about the timing of a possible Fed rate cut and assess the economic condition of the world's two largest oil consumers.