SINGAPORE, Oct 7 Reuters Oil prices fell on Monday, after posting their steepest weekly rise in more than a year last week, as oversupply concerns amid softer demand countered the worries over a wider Middle East conflict disrupting exports in the key oilproducing region.

Brent crude futures fell 28 cents, or 0.36, to 77.77 per barrel by 0645 GMT. U.S. West Texas Intermediate crude futures slipped 19 cents, or 0.26, to 74.19 per barrel.

Brent rose by more than 8 last week, the biggest weekly gain since January 2023, while the WTI contract gained 9.1 weekonweek, the most since March 2023, on expectations that Israel could strike Iranian oil infrastructure in response to an Iranian missile attack on Israel on Oct. 1.

However, as the Israeli response is still developing, some investors likely sold futures to lock in their gains from the recent climb.

Technical profittaking seems to be the most logical explanation, Priyanka Sachdeva, senior market analyst at Phillip Nova, said on the softening in oil prices.

Still, oil markets are bound to experience tailwinds amid fears of Israel39;s retaliation on Iran, as the potential massscale escalation of conflict in the Middle East has countered mounting demandside pressures, Sachdeva said.

Israel bombed Hezbollah targets in Lebanon and the Gaza Strip on Sunday ahead of the oneyear anniversary of Hamas39; Oct. 7 attacks on Israel that triggered the current war between Israel and the Iranianbacked militant groups. Its defence…