Anika Begay
By Colleen Howe
BEIJING (Reuters) – Oil prices were largely unchanged in early Asian trading on Monday, holding on to much of last week’s gains of more than 3 percent, buoyed 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 aware 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 take revenge for the assassinations of Hamas leader Ismail Haniyeh and Hezbollah military commander Fuad Shukr.
Israel’s 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, although Israel said the death toll was inflated. Hamas raised doubts about its participation in new ceasefire talks on Sunday.
Brent crude closed last week up more than 3.5%, while WTI gained more than 4%, on the back of supportive economic data and rising hopes of a U.S. interest rate cut.
Last week, three U.S. central bankers said inflation appeared to have cooled enough for the Federal Reserve to cut interest rates as early as next month.
In China, consumer prices rose faster than expected in July, and in the United States, weekly jobless claims fell more than expected last week.
