Oil prices flat

Oil prices remained stable on Monday, with Brent crude slightly up to $81.25 per barrel and West Texas Intermediate crude down to $77.06, amidst rising tensions following a rocket attack in the Israeli-occupied Golan Heights that killed 12 individuals. While Israel's security cabinet authorized a retaliatory response against Hezbollah, which denied responsibility for the attack, analysts noted that the market's reaction to Middle East conflicts has become muted in the absence of direct threats to oil supplies. Concerns about weaker demand from China, which reported an 11% drop in fuel oil imports in the first half of 2024, are contributing to a bearish outlook for oil. Furthermore, the prospect of a supply glut due to increased production from the U.S. and other non-OPEC countries is weighing on prices. The market remains cautious ahead of a U.S. Federal Reserve meeting this week, where interest rate decisions are anticipated. Analysts are monitoring the situation closely, recognizing that a broader conflict could impact crude supply from the region significantly.