Oil falls as supply concerns ease following diplomatic efforts to calm the Gaza war

Oil prices fell by over a dollar on Monday as supply concerns eased amid diplomatic efforts to contain the conflict between Israel and the Palestinian Islamic Resistance Movement (Hamas).

By 0628 GMT, Brent crude futures fell 67 cents to $91.49 per barrel, after losing $1.08 earlier in the session, recording $91.08 per barrel.

US West Texas Intermediate crude futures also fell 82 cents to trade at $87.26 per barrel, after falling $1.72 to $87.03 per barrel during the session.

Last week, contracts rose by more than one percent in their second weekly jump in a row, amid fears of a possible supply disruption if the war between Israel and Hamas develops into a broader confrontation in the Middle East, the largest oil supply region in the world.

At the beginning of the week, aid convoys entered the Gaza Strip from Egypt, where Arab leaders and foreign ministers had met to discuss the crisis at a summit in Cairo. However, the summit did not result in a joint statement.

To ease pressure on already scarce supplies due to production cuts by the Organization of the Petroleum Exporting Countries (OPEC) and its partners, including Russia, the United States suspended sanctions on OPEC member Venezuela after the Venezuelan government reached an agreement with the opposition.

US President Joe Biden intensified his diplomatic efforts and made phone calls one day with Israeli Prime Minister Benjamin Netanyahu and Pope Francis, and spoke with the leaders of Canada, France, Britain, Germany and Italy about bringing aid into Gaza and preventing the expansion of the conflict.

Dutch Prime Minister Mark Rutte will visit Israel on Monday, and the Elysee Palace announced that French President Emmanuel Macron will visit Israel on Tuesday.