Oil falls 1% on progress towards a ceasefire in the Gaza war

Oil falls 1% on progress towards a ceasefire in the Gaza war
Oil falls 1% on progress towards a ceasefire in the Gaza war

Fears of supply problems due to tensions in the Middle East fade. Focus on the impact of Hurricane Beryl in the US.

Image: Freepik

The prices of the Petroleum fell 1% on Monday, after four weeks of gains, as concerns about supply disruption eased on hopes of a ceasefire agreement in Loopalthough the possible impact of the Hurricane Beryl in supplies kept the decline under control.

The futures of the Brent crude oil were down 88 cents, or 1%, at $86.66 a barrel, and crude oil prices were down 1% at $86.66 a barrel. West Texas Intermediate in the United States (WTI) was down $1, or 1.2 percent, at $82.16 by 10:16 GMT.

Talks of a US ceasefire plan to end the Gaza warwhich has already lasted nine months, are underway and have the mediation of Qatar and Egypt.

Tony Sycamore, analyst at IGtold Reuters that if something concrete is achieved in the ceasefire talks, the geopolitical bidding will disappear from the market for the moment. “The Petroleum did not take advantage of the weakness of the dollar and came under some selling pressure from growing expectations of a ceasefire in Middle East“, added Charalampos Pissouros, from the brokerage XM.

Meanwhile, in the United States, Hurricane Beryl made landfall on Monday near Matagorda, Texas. The ports of Corpus Christi, Houston, Galveston, Freeport and Texas City closed on Sunday to prepare for the hurricane.

Port closures could temporarily paralyze crude oil exports and liquefied natural gas (LNG)shipments of Petroleum to refineries and the delivery of motor fuel from those plants.

Investors are also keeping an eye on the impact of last week’s elections in United Kingdom, France and Iran on geopolitics and energy policies.

The oil prices fell on Friday but traded near their highest level since late April and completed a fourth consecutive week of Profits, boosted by hopes for strong summer fuel demand and some supply concerns. Over the week, Brent rose 0.4%, while WTI futures posted a 2.1% gain.

Source: Ambito

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