The price of oil fell by about 1%, despite the stabilization of the US dollar and the end of the New Year holidays in China, which may lead to an increase in demand for petroleum products.
Market participants also ignored the news that an Israeli drone struck a military factory of the Iranian Ministry of Defense in the city of Isfahan over the weekend.
Investors are also preparing for the Fed meeting, the results of which will be announced on Wednesday. The latest slowdown in inflation is forcing traders to bet that the Fed will soon stop its most aggressive policy tightening in the last 40 years. Futures linked to the Fed's interest rate indicate an almost 100% probability that the Fed will raise the cost of borrowing by 0.25% at the February meeting. Fed policymakers have made it clear that they expect rates to eventually be slightly higher - just over 5% - and have said they are not going to cut rates this year to be sure they will definitely win over too high inflation.
In addition, traders are trying to assess the consequences of the upcoming European Union ban on sea imports of Russian petroleum products. The measures will take effect in about a week, along with price caps similar to the mechanism imposed on the nation's crude.