Crude Oil Futures Contracts Decline on Monday (April 8) After Israel Reduces Military Presence in Gaza

At the end of the trading session on April 8, WTI crude futures fell by 48 cents (equivalent to 0.55%) to $86.43 per barrel. Brent crude futures lost 79 cents (equivalent to 0.87%) to $90.38 per barrel.

Israel withdrew forces from the city of Khan Younis in southern Gaza over the weekend, reducing their troop numbers in the area to one of the lowest levels since the war with Hamas began in October 2023. Ceasefire talks between Israel and Hamas are ongoing in Cairo.

WTI and Brent crude had surged by more than 4% last week as tensions escalated between Israel and Iran, raising fears that a direct confrontation between the two sides would lead to regional conflict disrupting crude oil supplies.

A senior military advisor from Iran warned Israel over the weekend that its embassies could be targeted. Tehran blamed Israel for the April 1 missile attack on its consulate in Damascus, which killed top Iranian commander Mohammad Reza Zahedi.

Ukraine's drone strikes on Russian refineries also boosted crude oil prices, while global supply remained tight due to strong economic growth and production cuts by the Organization of the Petroleum Exporting Countries (OPEC).

Source: Vietstock