WTI Oil corrects lower from $75.00, but remains well above May's range

• Oil prices correct lower but remain buoyed by geopolitical risks.
• Fears of supply disruptions boosted prices 12% above late May's levels.
• Mixed data from China and ongoing concerns about global trade are weighing on prices on Monday.

Crude prices have pulled back from five-month highs right above the $75.00 level on Monday, but they remain 12% above the levels seen one month ago, boosted by investors' concern about supply disruptions stemming from the Iran-Israel war.

The price of the West Texas Intermediate barrel jumped about 3% on early Monday trading to retest the $75.00 level, following news that Israel attacked two natural gas processing plants in Iran over the weekend.

Fears of a supply disruption are buoying Crude Oil prices

Market fears that the conflict in the Middle East might disrupt Oil supply have been pushing prices higher since Israel struck Tehran on Friday. The potential danger that the conflict could extend into an already volatile area and that Iran might block the Strait of Hormuz, the gateway for 20% of the world's oil supplies, sent prices surging last week.

On the macroeconomic front, data from China has failed to provide any significant support to prices. Retail sales have increased beyond expectations, but the softer-than-expected industrial production has curbed optimism about the recovery of the world's second-largest economy.

Beyond that, a news report released over the weekend suggested that the US-China trade deal might have left the rare earths trade issue unresolved. This has revived market concerns about global trade and, therefore, the outlook for global demand for crude.