Oil prices slipped more than 1 percent on Monday as concern eased about the Israel-Hamas war affecting supply from the region and as investors adopted caution ahead of this week’s U.S. Federal Reserve meeting and other indications of global economic health.
Read more: Oil prices decline, analysts express optimism regarding supplies
Crude had jumped 3 percent on Friday, amid worries the conflict could expand in a region that accounts for a third of global oil output. However, that concern was fading on Monday, analysts said.
Brent crude futures dropped $1.39, or 1.5 percent, to $89.09 a barrel, while U.S. West Texas Intermediate (WTI) crude was down $1.63, or 1.9 percent, at $83.91.
As well as the Middle East, investors are focused on the outcome of Wednesday’s Federal reserve meeting as well as on what earnings from the likes of tech giant Apple might indicate regarding the prospects for economic slowdown.
The Fed is widely expected to keep interest rates unchanged, while the central banks of Britain and Japan are also set to review their policies.
China reports its October manufacturing and services PMIs this week, with investors looking out for more signs that the economy of the world’s top crude importer is stabilizing.Â
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