Oil prices fell moderately amid the strengthening of the US currency and weakness in the physical market. However, further price falls were limited by concerns about the conflict in the Middle East. Saudi Arabia's decision to raise official selling oil prices also provided support to prices, signaling expectations of high demand this summer.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.15% to 105.20.
Media reported that the Israeli military seized control of the Rafah border crossing between the Gaza Strip and Egypt, as mediators struggled to secure a ceasefire agreement.
Meanwhile, Russian Deputy Prime Minister Alexander Novak said that the OPEC+ is analyzing the possibility of increasing oil production, along with all other options, before its next meeting in June.
Investors are also preparing for the publication of reports on the oil market. Today, the U.S. Energy Information Administration will publish its short-term forecast, which will give an idea of the dynamics of the market, including the pace of oil supplies to the United States and prospects for further growth. Meanwhile, weekly data on oil reserves in the United States will be released tomorrow. Economists expect that last week oil reserves fell by 1.2 million barrels after an increase of 7.265 million a week earlier.