Israel Troop Pullback Supporting Oil Retreat Monday

Oil is retreating Monday, slipping against easing Middle East tensions as Israel pull more soldiers from southern Gaza and appear committed to ceasefire talks as international pressure mounts after aid worker deaths.

• Brent JUN 24 down -1.6% at 89.75$/bbl
• WTI MAY 24 down -1.5% at 85.59$/bbl
• Gasoil APR 24 down -2.3% at 850.25$/mt
• WTI-Brent up 0.13$/bbl at -4.91$/bbl
• Israel said on Sunday it had withdrawn more soldiers from southern Gaza, leaving just one brigade.
• Israel and Hamas sent teams to Egypt for fresh talks on a potential ceasefire in the six-month conflict. Israeli Prime Minister Benjamin Netanyahu said there would be no deal without a hostage release and that he would not cave to international pressure.
• Geopolitical tension drove oil more than 4% last week, some of which still persist, such as Irans expected response to the killing of its generals on April 1.
• Saudi Arabia raised its official selling prices for all crude grades to Asia in May after heavy oil supply tightened.
• Friday’s US employment report beat expectations, potentially delaying anticipated Fed rate cuts this year.
• Oil markets are waiting for US CPI data later this week to give further insight on rate cuts while CPI data from China will help to highlight its economic health.
• Oil exports out of Mexico fell 35% last month. Mexican state-owned oil company Pemex is planning to cut its crude oil exports in half to further the government's push to make the country self-sufficient in fuel production.
• The UAE is also seeing its Upper Zakum crudes slip, this time by 41% in March as it directs the crude to domestic refining in pockets of supply tightness for markets.
• The EIA is scheduled to release its Short-Term Energy Outlook on Tuesday. That will be followed by reports from OPEC and the IEA later in the week.