Oil prices experienced a downturn on Monday (April 29) following reports of Hamas leaders engaging in ceasefire discussions in Gaza, easing tensions in the region and alleviating market concerns over potential disruptions to oil supply.
West Texas Intermediate (WTI) crude futures dropped by $1.22, or 1.45%, closing at $82.63 per barrel, while Brent crude futures fell by $1.10, or 1.23%, settling at $88.40 per barrel.
A delegation of senior Hamas officials, led by Deputy Leader Khalil al-Hayya, arrived in Egypt to participate in ceasefire negotiations mediated by officials from Egypt, Qatar, and the United States. Egyptian Foreign Minister Sameh Shukri expressed optimism about the possibility of Israel and Hamas reaching a new ceasefire agreement.
In response, Israeli Foreign Minister Israel Katz announced the suspension of ground operations against Rafah, signaling a potential de-escalation of tensions in the region pending the outcome of the ongoing talks in Cairo.
In addition to geopolitical developments, oil prices faced pressure from concerns surrounding the Federal Reserve’s monetary policy. The release of the higher-than-expected Personal Consumption Expenditure (PCE) price index in the United States raised speculations that the Fed might maintain higher interest rates for a longer duration.
Investors are eagerly awaiting the outcome of the Fed’s monetary policy meeting scheduled for April 30 to May 1, along with the subsequent press conference by Fed Chairman Jerome Powell, for potential indications of further interest rate adjustments. Market expectations have shifted, with forecasts suggesting a more modest interest rate cut of 0.35% this year, compared to previous expectations of a 1.50% reduction.
Furthermore, investors are anticipating the release of the crude oil stock report from the US Energy Information Administration (EIA) on Wednesday, which will provide additional insights into the supply dynamics of the oil market.
The Spot Market is Open
Tuesday, April 30, 2024
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 07.00 | 82.60 | -0.03 | -0.04% |