WTI crude futures surged more than 3% to above $85 per barrel on Monday, recouping some losses from last week after a surprise attack by Hamas on Israel over the weekend started a conflict in the Middle East. While the violence is contained in the region for now, analysts feared that geopolitical tensions could escalate globally amid reports that Iran was involved in planning the attacks. Meanwhile, the US oil benchmark plunged nearly 9% last week as signs of weakening demand outweighed tightening supply. EIA data showed that US gasoline stocks rose the most since the first week of 2022, and the four-week average for US gasoline demand reached its lowest point for this time of the year since 1998. High interest rates and slowing global growth also clouded the demand outlook. On the supply side, Russia allowed diesel fuel exports via ports again after a recent ban, but gasoline exports remained restricted.
