Oil prices stabilize amid geopolitical tensions, economic data

(MENAFN) Oil prices remained largely unchanged in early Asian trading on Monday, maintaining most of the gains achieved last week amid ongoing geopolitical tensions and positive economic indicators. Brent crude futures were down by 7 cents, or 0.09 percent, settling at USD79.59 per barrel, while U.S. West Texas Intermediate (WTI) crude futures edged up by 2 cents, or 0.03 percent, to USD76.86 per barrel.

Market sentiment is still being influenced by heightened concerns over escalating tensions in the Middle East. Analysts from ANZ Bank noted that traders are wary of further developments in the region. The situation has been exacerbated by recent developments, including Iran and Lebanon's Hezbollah pledging retaliation in response to the assassination of Hamas political leader Ismail Haniyeh and the killing of a senior Hezbollah military commander, Fuad Shukr.

Last week saw a significant increase in oil prices, with Brent crude rising more than 3.5 percent and WTI crude gaining over 4 percent. This uptick was supported by strong economic data and growing expectations of a potential interest rate cut in the U.S. Federal Reserve. Additionally, three Fed policymakers indicated last week that they are increasingly confident that inflation is decreasing, which could lead to interest rate reductions as early as next month. China's consumer price index for July also exceeded expectations, and U.S. weekly unemployment benefit claims fell more than anticipated, further buoying market sentiment. 

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