Oil Steadies After 6% Drop With Focus on Mideast Risk, US Data
Oil steadied after tumbling 6% on Monday, as the market focused on developments in the Middle East and upcoming US economic data.
West Texas Intermediate was higher near $68 a barrel in early Asian trading, while Brent closed below $72 in the previous session. Israeli Prime Minister Benjamin Netanyahu said he was open to a short truce in Gaza in exchange for the release of a small number of hostages. That comes after Iranian oil sites were spared in Israel’s retaliatory strike over the weekend.
The easing of hostilities in the Middle East has unwound a war premium for oil and put the market’s weak fundamentals back into the spotlight — notably poor Chinese demand growth and plentiful supply. Traders will be watching a slew of economic data from the US this week, including on growth and employment, which will give clues on the path forward for monetary policy.
The plunge on Monday comes ahead of a crucial few weeks for oil prices, with the US election looming and the OPEC+ alliance planning to start gradually reviving production in December.
WTI for December delivery rose 0.8% to $67.94 a barrel at 7:29 a.m. in Singapore. Brent for December settlement closed 6.1% lower at $71.42 a barrel on Monday.
Source : Bloomberg