2024.01.1509:16:00UTC+00Oil Trades Lower In Cautious Trade

Oil prices traded lower on Monday after surging more than 2 percent in the previous week to touch their highest intraday levels this year after the United States and Britain carried out the strikes on the Houthi forces in Yemen in retaliation for attacks by the Iran-backed group on shipping in the Red Sea.

Benchmark Brent crude futures slipped 0.7 percent $77.76 a barrel, while WTI crude futures were down 0.7 percent at $72.22.

Investors are not seeing any impact on supply despite increased tensions in the Middle East.

In the Southern Red Sea on Sunday, a U.S. fighter aircraft skilfully thwarted an anti-ship missile directed at an American Navy vessel in the Southern Red Sea on Sunday.

The Houthi group threatened a "strong and effective response", potentially escalating the situation which has seen several shipping operators suspend routes through the Red Sea.

It's a busy week for markets, with a slew of U.S. and Chinese data and corporate earnings likely to garner investor attention.

After officials last week attempted to temper any expectation of a looming rate cut, investors now look ahead to U.S. reports on retail sales, industrial production, import and export prices, housing starts and consumer sentiment along with a speech by Federal Reserve Governor Christopher Waller this week for further direction.