Oil prices near $86 as concern about impact of Middle East tensions eases

Brent price fell on Monday, but remained above $86 a barrel as traders shifted their focus to inflation after concerns about the impact of tension in the Middle East on crude eased, since it had not negatively affected supplies so far.

According to Reuters, Brent crude futures fell 77 cents to $86.52 a barrel by 1227 GMT.

The May contract for US West Texas Intermediate crude, which expires on Monday, fell 46 cents to $82.68 a barrel. The most active June contract fell 72 cents to $81.5 a barrel.

US crude inventories rose by 2.7 million barrels, according to data from the Energy Information Administration last week, which is nearly double analysts’ expectations.

An analysis from Reuters also concluded that abundant supplies of some major crude grades limit the impact of the conflict in the Middle East on crude futures.

On the economic front, inflation has returned to attention again, as statements from US Central Bank officials and higher-than-expected inflation data have led to a decrease in expectations of a rate cut.