Oil prices fell on Monday, after last week registering their biggest weekly increase in over a year. However, fears of oversupply in a context of lower demand have offset concerns about a wider Middle East conflict disrupting exports in the key oil-producing region

Brent crude oil futures fell by 28 cents, or 0.36%, to $77.77 per barrel at 06:45 GMT. West Texas Intermediate U.S. crude oil futures slid 19 cents, or 0.26%, to $74.19 per

Brent rose by more than 8% last week, the biggest weekly increase since January 2023, while the WTI contract gained 9.1% on a weekly basis, the biggest rise since March 2023, due to expectations that Israel could hit Iranian oil infrastructure in response to an Iranian missile attack against Israel on 1 October.

However, as the Israeli response is still under development, some investors likely sold futures contracts to secure their gains from the recent surge.

Hezbollah rockets hit Haifa, Israel's third-largest city, police said early Monday, and Israeli media reported 10 injuries in the north of the country.

ANZ Research warned that despite the rise in oil prices last week, the impact of the conflict on oil supplies will be relatively small.

The Organization of Petroleum Exporting Countries (OPEC) and its allies, including Russia and Kazakhstan, a grouping known as OPEC+, have millions of barrels of reserve capacity since they cut production in recent years to support prices in a context of weak global demand.