Oil prices, which rose last week due to rising tensions in the Middle East, began to decline on the first trading day of the new week after comments from US President Joe Biden.
Biden, asked about how Israel would respond to Iran on Friday, said: “The Israelis have not decided what they will do in terms of attacking (Iran) and the talks are ongoing. If I were them, I would consider other options than the oil fields.”
Assessing the impact of a potential attack on supplies, Daniel Hynes, chief commodities strategist at Australia and New Zealand Banking Group (ANZ), said: “We see a direct attack on Iranian oil facilities as the least likely response from Israel. Such a move would anger its international partners, while cutting Iran’s oil revenues would likely leave it with little to lose and could lead to a more aggressive response.”
On the demand side, expectations were that the economy could record a “soft landing” following the employment data released in the United States last week.
Employment data in the country revealed that the economy is improving, which increased optimism about oil demand in the world’s largest oil consumer.
Technically, the resistance range for Brent oil may be between $78.07 and $78.87, while the support range is between $77.27 and $76.47.
