- Oil prices are trading higher, around $78.75, as Israel prepares Rafah attack
- Prices fell nearly $6/Bbl last week to the lowest levels since March amid a relaxation of risk premium and a larger than expected storage build in the US
- Israel tells civilians to evacuate Rafah (BBG)
- In a possible prelude to an attack on Rafah, the last part of Gaza controlled by Hamas, the Israeli Defense Force has told civilians to leave the area
- The move comes after ceasefire talks stalled over the weekend, and a Hamas rocket barrage killed three Israeli soldiers
- CIA head William Burns will be traveling to the Middle East in a bid to save negotiations today as the US continues to push for diplomatic solutions
- The conflict has led to higher risk premium in oil prices due to the risk of a wider regional conflict, although much of the risk premium has come out of prices in recent weeks
- Saudi Arabia increases crude prices to Asia (BBG)
- For the third consecutive month, Saudi Arabia has increased the official selling price of its flagship Arab Light crude to Asia
- Saudi Aramco increased the price by 90c to a $2.90/Bbl premium to the regional Oman-Dubai benchmark
- Saudi Arabia has been attempting to keep oil markets tight by reducing supply along with other members of OPEC, which has been reflected by the higher prices
