Oil starts the week with a decline
Oil retreated following losses in broader equity markets after Israel delayed its ground offensive into Gaza.
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Global benchmark Brent crude fell below 92 dollars per barrel, while U.S. crude traded around 87 dollars following a two-week rally.
Brent had recorded an increase of approximately 8 percent amid concerns that the conflict between Israel and Hamas could drag in other countries, including Lebanon, Iran, and potentially the U.S. The Middle East supplies about one-third of the world's crude oil, and the main risks for the market could be Washington tightening compliance checks on sanctioned Iranian oil and Tehran disrupting key shipping routes.
Israel's widely anticipated ground offensive into the Gaza Strip has been delayed to allow time for efforts to secure the release of hostages held by Hamas.
IG Asia Market Strategist Yeap Jun Rong said, "The focus on humanitarian aid and the release of hostages suggests that a potential Israeli ground offensive can wait, allowing oil to take a breather. This may contain the risk of further escalation, at least for now."
According to exchange data released on Friday, hedge funds increased their bets that Brent and U.S. crude would rise in the week ending October 17, as oil investors boosted bullish positions due to the war. Crude oil volatility also increased last week.