Fears of supply problems due to tensions in the Middle East fade. Focus on the impact of Hurricane Beryl in the US.
He Petroleum fell by nearly 1% to a one-week low on Monday as Hurricane Beryl battered Texas after his arrival at the Gulf of Mexicoamid expectations for a possible ceasefire agreement in Loop to ease concerns about supply disruptions.
The futures of the Brent North Sea crude prices fell 79 cents, or 0.9%, to $85.75 a barrel, while U.S. crude prices fell 1.8% to $85.75 a barrel. West Texas Intermediate (WTI) fell 83 cents, or 1.0%, to $82.33 a barrel.
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
