Oil falls by one percent ahead of Data

On Monday, oil prices fell by more than 1% as investors exercised caution in anticipation of the Federal Reserve’s monetary policy meeting and China’s manufacturing data release later in the week. This caution overshadowed the support generated by heightened tensions in the Middle East.

At 0350 GMT, Brent crude futures declined by 1.6%, equivalent to $1.1, reaching $89.37 a barrel, while West Texas Intermediate crude dropped by 1.2%, or $1.34, settling at $84.20 a barrel.

The previous Friday had seen both crude oil prices rise by three percent due to Israel’s escalation of ground operations in Gaza, raising concerns about the potential expansion of the conflict in a region responsible for a third of global oil production.

Investors are closely monitoring the outcome of the US Federal Reserve’s monetary policy meeting scheduled for Wednesday, along with the release of US job data and earnings results from technology giant Apple. These events are crucial as investors seek indications of any economic slowdown that might impact fuel demand in the United States, the world’s largest oil consumer.

It is widely anticipated that the US Federal Reserve will maintain unchanged interest rates.”