Oil prices retreat as U.S. crude build, rate cut concerns come to the fore [Video]

Oil prices fell at Asia’s open on Monday, dragged down by a renewed focus on market fundamentals, as Israel and Iran played down the risks of an escalation of hostilities in the Middle East after Israel’s apparently small strike on Iran.

Brent futures fell 54 cents, or 0.6%, to $86.75 a barrel by 1218 GMT.

The front month U.S. West Texas Intermediate (WTI) crude contract for May, which expires on Monday, fell 12 cents to $83.02 a barrel. The more active June contract dropped 47 cents, or 0.6%, to $81.75 a barrel.

“Economic concerns again become a bearish factor of the crude market,” with prices “under pressure due to a large build in the U.S. stockpile and a hawkish Fed that led to a strong dollar,” said independent market analyst Tina Teng.

On Friday, Chicago Federal Reserve President Austan Goolsbee became the latest central banker to signal a longer timeline for interest rate cuts because progress on inflation had “stalled”.

U.S. crude inventories …