In this article, world-renowned investment manager Colleen Howe discusses the latest trends in oil prices in early Asian trading. Find out how geopolitical tensions and economic data are impacting the market.
By Colleen Howe
BEIJING (Multibagger) - Oil prices were little changed in early Asian trading on Monday, holding on to most of last week's more than 3% gains, supported by geopolitical tensions and better economic data.
futures fell 7 cents, or 0.09%, to $79.59 a barrel by 0021 GMT, while U.S. West Texas Intermediate crude futures rose 2 cents, or 0.03%, to $76.86.
"Traders remain mindful of simmering tensions in the Middle East," ANZ analysts said in a note.
The risk of an escalation in the Israeli-Palestinian conflict continued to support prices after Iran and Hezbollah vowed to retaliate for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
The Israeli incursion into Gaza intensified on Saturday with an airstrike on a school compound that killed at least 90 people, according to the Gaza Civil Emergency Service, though Israel said the death toll was inflated. Hamas cast doubt on its participation in new ceasefire talks on Sunday.
Brent ended last week up more than 3.5% on the week, while WTI gained more than 4%, on supportive economic data and increased hopes of a U.S. interest rate cut.
Three U.S. central bankers said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month.
China's consumer prices rose faster than expected in July, and U.S. weekly jobless claims fell more than expected last week.
Analysis and Breakdown:
Oil prices remained stable in early Asian trading, with Brent and WTI futures showing slight movements. Geopolitical tensions in the Middle East, particularly in the Israeli-Palestinian conflict, are contributing to the support for prices. Additionally, positive economic data, such as China's consumer price rise and the decrease in U.S. weekly jobless claims, are influencing market sentiment. The possibility of a U.S. interest rate cut in the near future is also a key factor to watch. Investors should monitor these developments closely to make informed decisions regarding their portfolios.