Oil fell following last week's gains after Iran's foreign minister warned that the conflict between Israel and Hamas may be nearing a diplomatic resolution. Trading remained weak as many Asian markets were closed for Lunar New Year.
After rising 6.3% last week, Brent crude fell 0.8% to below $82 a barrel, and West Texas Intermediate traded around $76.
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Iran's Hossein Amirabdollahian has held talks with senior Hamas officials in Beirut in recent days. “The situation in Gaza is moving toward a diplomatic solution,” he said, without specifying a timeline.
Meanwhile, Israeli forces carried out a series of attacks targeting the city of Rafah in the southern Gaza Strip. Prime Minister Benjamin Netanyahu said Sunday that he would direct civilians to be removed from danger before military operations.
Oil prices have remained stable for most of this year as tensions over Middle East conflicts are partially offset by ample global supplies and a volatile demand outlook, particularly in China, the second-largest consumer. , is trading within a range of about $10.
Production in the Permian Basin of West Texas and New Mexico, which contributed to unprecedented U.S. exports last year, is expected to reach new records this year. Major pipeline operator Plains All American Pipeline LP said in its fourth quarter earnings call that production is expected to increase by nearly 5% to 6.4 million barrels per day by the end of 2024. Ta.
Analysts at Goldman Sachs Group Inc. said in a note that there are further downside risks to China's demand forecast, citing a surge in electric vehicle sales and conversations with local consumers.
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Traders will look to monthly reports from both OPEC and the International Energy Agency this week for further indicators of supply and demand.
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