WTI declines to near $76.30 on eased concerns about oil supply disruptions in the Red Sea
|- WTI price edges lower after Israel’s series of strikes in Gaza's southern city of Rafah.
- Israeli Prime Minister Binyamin Netanyahu expressed his intention to escalate the military operation into Rafah.
- IMF MD Kristalina Georgieva highlighted that Middle Eastern economies were underperforming compared to growth projections.
West Texas Intermediate (WTI) oil price halts its five-day winning streak from the previous week, trading slightly lower to around $76.30 per barrel during the Asian session on Monday. The decline in Crude oil prices comes as Israel concluded a series of strikes in Gaza's southern city of Rafah, alleviating concerns about oil supply disruptions in the Red Sea region.
Israeli Prime Minister Binyamin Netanyahu expressed his intention on Sunday to escalate the military operation into Rafah. However, US President Joe Biden cautioned Netanyahu against proceeding with a ground operation in Rafah without a "credible and executable" plan to ensure the safety of the people sheltering there. Hamas also warned Israel that a ground offensive in Rafah could jeopardize future hostage releases.
However, oil prices surged last week on heightened concerns about a potential escalation of geopolitical tensions in the Middle East following Netanyahu's rejection of a proposal to halt the conflict in the Palestinian enclave.
During the Arab Fiscal Forum in Dubai on Sunday, Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), highlighted that Middle East economies were underperforming compared to growth projections. Factors contributing to this included oil production cuts and the Israel-Gaza conflict. Despite this, Georgieva noted that the global economic outlook remained resilient. In its regional economic report last month, the IMF revised its GDP growth forecast for the Middle East and North Africa down to 2.9% for the year, falling below previous projections from October.
On Friday, Baker Hughes released its US Oil Rig Count data, indicating no change in the active rig count, which remained steady at 499. Additionally, the OPEC Monthly Oil Market Report (MOMR) is scheduled for publication on Tuesday. This report covers significant issues impacting the global oil market and offers insights into developments in the Crude oil market.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.