Both Brent and WTI crude oil fell by around 2% due to progress towards a cessation of hostilities in the Middle East.
The prices of the Petroleum fell on Tuesday, pressured by growing expectations of a ceasefire in the war of Loopwhich offset support from news of a possible interest rate cut in September in the European Union (EU)).
The futures of the Brent crude oil for delivery in September fell $1.39, or 1.7%, to $82.01 a barrel, and West Texas Intermediate in the United States (WTI) for the same month fell by $1.44 to $76.96 at 11:35 GMT. Oil prices have fallen in the previous two sessions.
The vice president of the European Central Bank (ECB), Luis de Guindoshinted at a possible rate cut in September, improving investor sentiment as lower borrowing costs support demand and crude prices.
The ECB kept rates steady last week, but its president, Christine Lagardesaid the next meeting in September is “totally open.” Several monetary authorities are also openly considering the possibility of further cuts as pressures ease. inflationary pressures.
“He Petroleum “The market is moving within a range, only moderately upwards, and that support could come from most European stock markets in positive territory, benefiting from a risk-on environment,” said Giovanni Staunovo, of UBS.
In USAsome operators are also betting on a reduction in rates in September by the Federal Reserve (Fed).
The possibility of peace in the Middle East
In Middle Eastefforts to reach a ceasefire agreement between Israel and the militant group have gained momentum in the past month Hamasaccording to a plan outlined by the US president Joe Biden in May and with the mediation of Egypt and Qatar.
Israeli Prime Minister, Benjamin Netanyahu, He told the families of the hostages held in Loop that a deal to secure his release could be close, even as fighting intensified in the Palestinian enclave.
“Ceasefire negotiations in Middle East and uncertain macroeconomic prospects in China are putting downward pressure on oil prices this week,” he said. Claudio Galimberti, Director of Global Markets Analysis at Rystad.
Source: Ambito
