Oil declines on dollar strength with war premium still intact

Oil fell as the dollar rallied, but was still holding onto almost half of the previous day's surge driven by Israel confirming it was preparing for a ground invasion of Gaza.

Global benchmark Brent fell below US$90 a barrel after climbing 2.3 per cent Wednesday. Israel's Prime Minister Benjamin Netanyahu said his nation was in a battle for its very existence, and that an invasion was being prepared. The country's armed forces said they had entered northern Gaza to attack cells overnight before exiting the area.

Netanyahu's remarks reignited a war premium in oil futures that had been subsiding over the last few days as a price slump in real-world barrels dented concerns of a price spike.