Oil prices decline as Israel says ‘concluded’ Gaza strikes

Oil prices in early Asian trade fell on Monday after Israel announced the conclusion of a series of strikes in southern Gaza, easing concerns about supply from the Middle East, Reuters reported.

Brent crude futures dropped by 0.4 per cent to $81.88 a barrel, while U.S. West Texas Intermediate (WTI) crude futures also plummeted by 0.4 per cent to $76.53 a barrel at 0520 GMT.

Last week, geopolitical tensions, including the Israel-Palestinian conflict and potential oil supply disruptions in the Middle East, led to a 6 per cent increase in prices.

The Israeli military conducted strikes in southern Gaza, which have now ceased, after Prime Minister Benjamin Netanyahu rejected a ceasefire proposal from Hamas.

Concerns about logistics disruptions in the Red Sea continued, with the UK Maritime Trade Operations (UKMTO) agency reporting a ship being attacked by two missiles south of Yemen’s Al Mukha.

U.S. energy firms raised oil and natural gas rigs to the highest level since mid-December, potentially indicating increased output. Domestic production reached a record 13.3 million barrels per day (bpd) last week.

Trading in Asia is expected to be thin as many countries, including China, Hong Kong, Japan, South Korea, Singapore, Taiwan, Vietnam, and Malaysia, are closed for holidays.