Oil prices edge lower with Asian markets shut for holidays

Oil Prices Drop on Asian Market Closure

Oil prices fell by around 2% in early trading on Monday, influenced by subdued activity as most Asian markets, including Japan and China, were closed for holidays. The drop followed a recent decline from six-month highs due to easing geopolitical tensions and signs of potential progress in Gaza ceasefire negotiations.  

Brent crude futures dropped 1.9% to $88.46 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 2.1% to $82.84. The decline came after both benchmarks lost nearly 1% in the previous session, retreating from their highest levels since October.  

Market analysts noted that reduced trading volumes during the holiday period amplified price movements. Additionally, fading concerns over supply disruptions from the Middle East, along with expectations of prolonged higher U.S. interest rates, contributed to the downward pressure on oil prices. Investors are now awaiting further signals from upcoming economic data and Federal Reserve policy decisions.