Oil prices fell in early Asian trading, Monday, after Israel said it had ended a series of strikes on the southern Gaza Strip, which slightly eased concerns about supplies from the Middle East.
Brent crude futures fell 43 cents, or 0.5 percent, to $81.76 per barrel, while US West Texas Intermediate crude futures fell 46 cents, or 0.6 percent, to $76.38 per barrel by 0135 GMT.
Geopolitical risks, including fears of the Israeli-Palestinian conflict expanding across the region and the possibility of disruption to oil supplies from the Middle East, pushed prices up about 6 percent last week.
While concerns about supplies in the Middle East remained relatively high, news from the United States allayed some concerns.
US energy companies increased the number of oil and natural gas rigs to their highest levels since mid-December, which may indicate an increase in production. Domestic production returned last week to a record level of 13.3 million barrels per day.
Concerns about demand remain, with a Federal Reserve official saying she is not interested in recommending an interest rate cut, adding to calls for more action to curb inflation. High interest rates slow economic growth, reducing demand for oil.
