04:41 AM EDT, 04/08/2024 (MT Newswires) -- Crude oil prices retreated early Monday amid easing tensions in the Middle East, with Israel withdrawing soldiers from Gaza and committing to renewed talks on a potential ceasefire.

Brent crude fell 1.3% to US$90 per barrel and West Texas Intermediate crude lost 1.3% to US$85.75/b at last look early Monday.

"It appears the catalyst is Israel saying it has withdrawn all troops except one brigade from the Southern Gaza strip, likely in response to growing international pressure and to deescalate tensions after it killed senior Iranian commanders in Syria last week," Reuters reported IG market analyst Tony Sycamore as saying Monday.

Prices remain relatively elevated as geopolitical risks remain an ongoing issue for the oil market after a period of instability, ANZ Bank said in a Monday note.

Stricter implementation of production quotas by OPEC members should see output fall in the second quarter, the bank noted. This tightening should support crude oil prices in coming months, the bank noted.