Oil trending down

Oil fell after its first weekly decline this year, as investors weighed potential moves from Iran and Israel amid rising tensions in the Middle East. Brent crude fell 3.5% last week to below $87 a barrel, the biggest drop since early February. The market was uneasily calm after prices fell sharply on Friday as Iran downplayed Israel’s response to drone and missile strikes. The U.S. House passed new sanctions on Iran’s oil sector in the wake of the hostilities, clearing the Senate within days of the measure. The country also approved new financing for Ukraine’s war against Russia. “What’s quite surprising is that oil prices don’t seem overly concerned, despite the heightened risk and tensions in the Middle East,” said Warren Patterson, head of commodity strategy at ING Groep NV. Oil has risen about 13% this year, driven by geopolitical tensions and supply cuts by OPEC+ that have tightened the market. Investors will be focused on a raft of U.S. economic data this week, including the Fed’s preferred measure of inflation, which could provide more clues about the path of monetary policy. Earnings are also due this week for the world’s largest oil majors, including TotalEnergies SE, Chevron Corp. and Exxon Mobil Corp., as well as Asian companies Reliance Industries Ltd. and Cnooc Ltd.