Oil prices experienced a decline in early Asian trading on Monday, reversing gains from Friday as Israel-Hamas peace talks in Cairo alleviated concerns of a broader conflict in the Middle East. Additionally, U.S. inflation data dampened prospects of imminent interest rate cuts.
Brent crude futures dropped by as much as $1, or 1.1%, to $88.50 a barrel before slightly rebounding to $88.55 at 0149 GMT. West Texas Intermediate (WTI) futures also saw a decline of 84 cents, or 1%, reaching $83.01 a barrel.
Analysts attribute the weak opening on Monday to intensified efforts aimed at mediating a ceasefire between Israel and Hamas, thereby moderating geopolitical tensions in the region.
A Hamas delegation is scheduled to engage in peace talks in Cairo, as confirmed by a Hamas official to Reuters. Israel’s foreign minister indicated the potential postponement of a planned incursion into Rafah, where over a million displaced Palestinians seek refuge, contingent upon a deal involving the release of Israeli hostages.
The White House reported that Israel has agreed to consider U.S. concerns regarding the humanitarian impact of a prospective invasion.
Market attention also remains focused on the U.S. Federal Reserve’s policy review scheduled for May 1st.
The dynamics surrounding geopolitical developments in the Middle East and monetary policy decisions continue to influence oil markets, with investors closely monitoring for further developments and their potential impact on oil prices.
Source: Reuters
