(Bloomberg) — Oil traded near a five-month high as investors weighed simmering tensions in the Middle East and persistent supply concerns.
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Brent futures edged above $90 a barrel after closing 0.9% lower on Monday, the first decline in five sessions. West Texas Intermediate was below $87. Israeli officials said progress has been made in negotiations for a cease-fire in Gaza, signaling a potential easing of hostilities, but Hamas denied the claim.
The market is also bracing for Iran’s response to a suspected Israeli attack on its consulate in Syria last week. Hezbollah warned it’s ready for war.
The broader outlook remains bullish and some market watchers are talking about $100 oil again as OPEC+ maintains its output cuts. The options market is flashing strength, with the heaviest buying of bullish call options for Brent — which profit when oil prices rise — since 2019 on Friday.
This week, traders will need to digest a series of reports that will provide a snapshot on the supply and demand outlook, including monthly releases from OPEC and the International Energy Agency.
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