Brent crude futures fell 93 cents, or 0.8 percent, to $115.79 a barrel in early trade on Monday, while West Texas Intermediate dropped 99 cents, or 0.96 percent, to $102.28 a barrel. The retreat followed a sharp rally the previous week, when prices touched their highest level in nearly six months. Brent closed at $116.72 on Friday, after rising 3.1 percent that day, and posted a weekly gain of 6 percent.
The rally was driven by concerns over Houthi attacks in Saudi Arabia. Houthi forces, backed by Iran, have claimed responsibility for recent strikes on the port of Yanbu on the Red Sea and a deadly attack on oil fields and airports in the kingdom. Those attacks raised fears about supply, even as the market kept its focus on the wider US-Iran war, which is now nearing its ninth month.
Traders weigh escalation risk
Rebecca Babin, senior energy trader at CIBC Private Wealth Group, said concerns about escalation over the weekend pushed prices higher. Traders remain anxious, she said, although geopolitical analysts downplay the likelihood of a further escalation.
Brent has risen more than 85 percent this year. Refined products have climbed faster than crude, with diesel prices leading the gains. Flows through the Strait of Hormuz recently surged, adding pressure on the physical market even as futures continued to rise.
Related: Brent tops $114 a barrel on renewed US-Iran fears · Brent slips to $109.55 after Houthi claim Saudi strikes
