(Bloomberg) — Oil slipped for the first time in five sessions after Israel said it would pull some troops from Gaza, with traders also waiting for a series of market reports this week that will provide a snapshot on supply and demand.
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Brent futures slid below $90 a barrel after closing at the highest level in more than five months on Friday. West Texas Intermediate dropped under $86. Oil has rallied recently on escalating geopolitical tensions and supply shocks, raising the prospect of the global benchmark reaching triple figures.
Israel said on Sunday that the country is removing some troops from southern Gaza, as Prime Minister Benjamin Netanyahu said victory was within reach. Still, Iran continued to prepare a response to a suspected Israeli attack on its consulate in Syria, while Hezbollah warned that it’s ready for war.
Oil capped a fourth weekly advance on Friday, the longest run of gains since August, but the rapid rally higher has presented some technical resistance. Brent rose into overbought territory on the 14-day relative strength index, adding short term headwinds.
The Energy Information Administration is scheduled to release its Short-Term Energy Outlook on Tuesday, which will be followed by reports from OPEC and the International Energy Agency later in the week.
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