Oil declines 1% ahead of US and Chinese data

Oil prices fell by more than 1% today, Monday, as investors remained cautious ahead of the Federal Reserve’s monetary policy meeting and manufacturing data in China this week, the impact of which outweighed the support derived from tension in the Middle East.

By 0350 GMT, Brent crude futures fell 1.6%, or $1.1, to $89.37 per barrel, and West Texas Intermediate crude fell 1.2%, or $1.34, to $84.20 per barrel.

According to Reuters, Tina Ting, an analyst at CMC Markets, said, “Despite the escalation in the war between Hamas and Israel, a ground invasion is widely expected.” She added, “The situation at the beginning of the week indicates no further escalation into a broader regional war, which caused a decline in oil prices.”

The two crude oil prices rose 3% on Friday at the close after Israel intensified its ground operations in Gaza, which reinforces fears of the expansion of the scope of the conflict in a region that constitutes a third of global oil production. Investors are awaiting the outcome of the US Central Bank’s monetary policy meeting on Wednesday, US job data, and the earnings results of the large technology company Apple, looking for indications of any economic slowdown that may affect fuel demand in the United States, the largest oil consumer in the world. It is widely expected that the US Federal Reserve will keep interest rates unchanged.