Oil trending down

Oil fell for the first time in five sessions as investors awaited a series of market reports this week that would provide a snapshot of supply and demand after Israel said it would withdraw some troops from Gaza. Brent crude was down more than 2% at around $89 a barrel after closing at its highest level in more than five months on Friday. U.S. crude fell below $85. Oil has recently rebounded amid rising geopolitical tensions and supply shocks, raising the possibility that the global benchmark could reach triple figures. Israel said on Sunday it was withdrawing some troops from southern Gaza after Prime Minister Benjamin Netanyahu said victory was imminent. Still, Iran continued to prepare a response to a suspected Israeli attack on its consulate in Syria, while Hezbollah warned it was ready for war. “The concession to remove troops from Gaza does not justify the ongoing threat of more direct conflict involving Iran,” said Vishnu Varathan, head of Asia economics and strategy at Mizuho Bank. Oil advanced for a fourth weekly gain on Friday, its longest since August, but the rapid rise created some technical resistance. The U.S. Energy Information Administration is scheduled to release its Short-Term Energy Outlook on Tuesday, followed by reports from OPEC and the International Energy Agency later in the week.