Oil prices fell $1 a barrel on investor caution ahead of the Fed’s monetary policy meeting and Chinese production data later this week, which weighed on geopolitical tensions in the Middle East.
Brent crude futures were down 98 cents, or 1.1 percent, at $89.50 a barrel, while U.S. West Texas Intermediate crude was at $84.54 a barrel, down $1, or 1.2 percent.
“Investors are awaiting the outcome of the Federal Reserve’s monetary policy meeting on Wednesday, US jobs data and earnings data from tech giant Apple Inc. for signs of any economic slowdown that could affect fuel demand in the world’s biggest oil consumer,” said CMC Markets analyst Tina Teng.
Both Brent and WTI rose 3 percent on Friday after Israel stepped up its ground incursions into Gaza, raising concerns that the conflict could spread in the region that accounts for a third of the world’s oil production.
Last week, Brent and WTI posted their first weekly decline in three weeks as developments in the Middle East kept investors on edge and prices volatile.
China will release its October economic activity index this week, and investors will be watching for further signs of stabilizing the economy and improving fuel demand in the world’s biggest crude importer and second-biggest consumer after Beijing launched a series of measures to support the economy, Fena reports.
