Oil prices suffered losses in Asian trading on Monday, as market players cut risk premiums following an Iranian attack on Israel late Saturday that the Israeli government said caused only limited damage.
price movement
By 0309 GMT, Brent crude futures for June delivery were down 28 cents, or 0.3 percent, at $90.17 a barrel, while West Texas Intermediate crude futures for May delivery were down 40 cents, or 0.5 percent, at $85.26 a barrel.
The attack, which involved more than 300 missiles and drones, was the first to target Israel from another country in more than 30 years, and raised fears of a wider regional conflict affecting the movement of oil across the Middle East.
But the attack, which Iran described as retaliation for an airstrike on its consulate in Damascus, caused only minor damage as Israel's Iron Dome air defense system shot down most of the rockets. Israel has neither confirmed nor denied responsibility for the attack on the Iranian consulate.
Oil prices rose on Friday in anticipation of Iran's response to the targeting of its consulate, and touched their highest levels since October.
But prices ended the week down 1 percent after the International Energy Agency cut its forecast for oil demand growth this year.
Despite the limited damage to Israel from the Iranian attack, analysts were widely expecting at least a short-term rise in prices this morning.
The attack represents a serious and unprecedented development in an already volatile region, said Rystad Energy's senior vice president, Jorge Leon.
The most significant and long-lasting price impacts from the escalation would require a significant supply disruption, such as shipping restrictions in the Strait of Hormuz near Iran, analysts said.
So far, the conflict in the Gaza Strip has had little tangible impact on oil supplies.
