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Brent falls in Asian trading as supply concerns ease for now

On Friday Oil prices continued to rise into the weekend. The price of Brent crude for June delivery did not look back. It rose close to $92 per barrel after the European close and later settled, $0.52 higher, at $91.17. The gains gains in oil prices ahead of the weekend were explained here earlier in the day and it was all about risk aversion and supply concerns, if a significant military response was forthcoming from Iran over the weekend. Well, that did not happen and the news that Isreal is removing forces from the southern area of Gaza has clearly had a further impact on the pricing dynamic this morning. So, all that buying in oil has been reversed today. Now Brent for June delivery has fallen back underneath $90. In fact earlier today, it fell below $89 (88.79 the low). Since dipping below that level some 6 hours ago the price has edged higher and has been trading sideways, as it awaits further developments. So, the risks do look a little more balanced on the supply side concerns this morning, but by no means has the potential for a supply shock yet been removed. Brent is currently trading at $89.70 

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