Oil prices flat with storm Beryl impact, Gaza peace talks in focus
2024.07.08 21:42
Investing.com– Oil prices steadied in Asian trade on Tuesday as markets watched for the potential impact of tropical storm Beryl on U.S. oil production, while ongoing ceasefire talks between Israel and Hamas remained in focus.
Prices were nursing steep losses from Monday, as a mix of profit-taking and increased speculation over a Gaza ceasefire sparked flows out of oil.
expiring in September hovered around $85.72 a barrel, while steadied at $81.49 a barrel by 20:40 ET (00:40 GMT).
Tropical storm Beryl batters Texas oil infrastructure
Tropical storm Beryl made landfall in Texas on Monday, knocking out power across a large swathe of the state while also causing disruptions in the state’s oil industry.
While the storm had strengthened to a category 1 hurricane as it made landfall, it weakened to a tropical storm shortly after, and is expected to weaken further as it makes its way up the coast.
But a slew of oil producers, exporters and refiners were seen suspending operations along the Gulf of Mexico, which could present some near-term disruptions in U.S. oil supply.
Key export terminals in Texas were expected to be impacted by the storm, although it was not immediately clear just what the overall impact would be.
Analysts had initially expected Beryl to have a limited impact on U.S. oil production.
Gaza ceasefire chatter dents oil prices
Crude prices fell sharply on Monday as a slew of media reports marked some progress in ceasefire talks between Israel and Hamas.
Hamas was seen making several major concessions last week to meet a ceasefire with Israel. But Israel kept up its assault on Gaza, carrying out new strikes on Monday.
Hamas leaders said that continued aggression by Israel could jeopardize ceasefire negotiations.
The U.S. was also seen pressing Israel to reach a ceasefire. But Prime Minister Benjamin Netanyahu insisted that any ceasefire should allow Israel to keep fighting until its war objectives were met.
Chinese economic data to offer more cues
Market focus this week was also on a slew of economic signals from China, which are set to offer more cues on the world’s biggest oil importer.
Chinese and readings are due through the week, and are likely to tie into the outlook for Chinese demand.
Concerns over a potential trade war between China and the West also remained in play, after the European Union imposed steep tariffs on imports of Chinese electric vehicles.
