Oil prices inch lower amid Israel ceasefire watch, rate jitters By Investing.com
2024.04.29 23:26
Investing.com– Oil prices fell slightly in Asian trade on Tuesday, extending declines from the prior session as focus remained on any progress in ceasefire talks between Israel and Hamas.
Growing expectations of higher-for-longer U.S. interest rates, before a Federal Reserve meeting this week, also weighed on sentiment.
expiring in June fell 0.1% to $88.29 a barrel, while fell 0.2 % to $82.48 a barrel by 20:54 ET (00:54 GMT).
was set for a 1.7% gain in April- its fourth straight month in black, while WTI prices were set to lose 0.8% in April.
Israel-Hamas ceasefire talks in focus
Media reports said that Israel had offered a 40-day ceasefire offer to Hamas, as delegates from the two met in Egypt for renewed talks. The Hamas delegation left Cairo, and will return with a written response to the proposal, reports said.
The proposal offers a 40-day truce in exchange for the return of hostages and displaced families begin allowed back into northern Gaza. It also includes new wording intended to satisfy Hamas’ need for a permanent ceasefire.
Peace talks between Israel and Hamas have repeatedly fallen through in recent months, with Hamas stating that it will not accept any proposal short of a permanent ceasefire.
But a ceasefire represents a potential de-escalation in the conflict, which could see traders attach an even lower risk premium to oil.
Fears of disruptions in Middle East supply have been a key booster of oil prices in recent weeks. But this notion somewhat eased after a conflict between Iran and Israel did not give way to war.
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Rate jitters, dollar strength remain in play
Oil prices were also pressured by the prospect of higher-for-longer U.S. interest rates, with these concerns coming into play just before a this week
The central bank is widely expected to keep rates steady. But any signals on future rate cuts will be watched, especially as traders largely priced out the prospect of early rate cuts in 2024.
Markets fear that higher-for-longer rates will pressure the global economy and in turn dent oil demand this year.
Strength in the also pressured oil prices.
