Oil prices fell by more than 1.5% on Monday after last week recorded the largest decline since early February. The price correction is caused by easing fears about a larger conflict in the Middle East, while rising U.S. crude stocks had added to the pressure to sell.
Meanwhile, the U.S. House of Representatives has passed new sanctions on Iran's oil sector over the attack on Israel, putting the measure on track to pass the Senate in days. But experts said the market will need to see if US sanctions impact Iranian flows before reacting. In addition, financial managers are most bullish about Brent crude since March 2021, as they buy up contracts to capitalize on any price spike amid heightened tensions.
Experts warn that economic problems are once again becoming a bearish factor in the crude oil market, with prices under pressure due to a significant increase in oil reserves in the United States. This week, investors will focus on a variety of US economic data, including the Fed's preferred inflation indicator, which will provide more clues about the direction of monetary policy. Earnings reports from the world's largest oil companies, including TotalEnergies SE, Chevron Corp., are also due to be published this week.