Oil plunged a bit on Monday on lingered worries over a forthcoming decline in demand, which eliminated concerns about possible supply delays brought on by fresh attacks in the Red Sea.

US crude futures edged down 0.3% at $78.26 per barrel while Brent crude dipped 0.2% to $83.27 per barrel.

Growing Middle East violence, particularly after the Israel-Hamas war, has been a major driver of oil price support, particularly as fighting in the Red Sea indicated that oil supplies to various regions of Asia and Europe might be delayed.

The previous week, front-month Brent and WTI futures increased by roughly 1.5% and 3%, respectively, as the likelihood of a wider Middle East conflict increased.

Due to worries about weak demand, the market has kicked off the new week weaker than it started, particularly in light of rising longer-term U.S. interest rates and deteriorating global economic prospects.