Oil prices saw a decline on Monday as tensions in the Middle East eased following reports that Israel had scaled back its ground forces in the southern part of the Gaza Strip.
This development comes after oil prices surged last week. On the NY Mercantile Exchange, May delivery WTI dropped 0.55% ($0.48) to $86.43/barrel.
Similarly, Brent crude for June delivery dropped by 0.87% ($0.79) to $90.38 a barrel on the Intercontinental Exchange.
Spartan Capital noted in a report, “Oil falls as Israel reduces ground troops in southern Gaza, though Hamas states the truce agreement remains at a deadlock.”
In recent developments, the United States has intensified its urging on Israeli Prime Minister Benjamin Netanyahu.
They’re pushing him to halt his plans for a ground incursion in Rafah, located in the southern Gaza Strip.
US push for more aid and Gaza civilian safety has noticeable effect, amid Israel-Gaza ceasefire deadlock.
Despite Netanyahu announcing on Monday that a date had been set for an Israeli invasion of Rafah.
Israel has also targeted other adversaries in recent days, including the Lebanese group Hezbollah, while talks for a potential truce in Gaza are underway.
Without significant geopolitical shifts, the contracts found room for some adjustment after recent gains.
Navellier anticipates future oil price hikes, potentially exceeding $100 per barrel, despite Monday’s temporary drop.
Morgan Stanley analysts raised the third-quarter Brent crude forecast to $94, citing geopolitical risk adding $4 to their estimate.