The price of crude oil fell at the start of the trading week as Israel announced a pause in its airstrikes on southern Gaza, reducing concerns about supply disruptions.
Both Brent crude and West Texas Intermediate fell somewhat in Asian trading, presumably due to rumours of another Houthi rebel raid on a ship in the Red Sea.
Furthermore, Iran's foreign minister hinted at a possible diplomatic solution to the Gaza crisis, causing oil prices to fall even lower.
Plains All American Pipeline forecasts record-breaking oil production from the Permian Basin in its 2023 financial report.
This was exacerbated by a fresh oil demand projection from Goldman Sachs, which emphasised predictions of growing electric vehicle adoption in China, potentially lowering demand.
Furthermore, the Federal Reserve's decision not to decrease interest rates immediately is expected to keep oil prices constant for the time being.
However, there were some positive factors influencing oil prices, such as news of another Houthi raid on a ship in the Red Sea.
Despite retaliatory efforts by the United States and the United Kingdom, Houthi attacks on ships in the region continue, resulting in rerouted marine traffic and perhaps increased demand for oil owing to longer shipping routes.