Oil prices close lower
The conflict in Gaza has supported oil futures as investors assess the risk of potential supply disruptions in key Middle Eastern regions.
Oil prices fell nearly 2% on Tuesday, hitting a six-week low, pressured by expectations of a ceasefire in Gaza and concerns about demand in China.
Brent futures for September delivery dropped $1.39, or 1.7%, to $81.01 a barrel, while West Texas Intermediate (WTI) in the U.S. for the same month fell $1.44, or 1.8%, to $76.96.
Oil prices also declined in the two previous sessions. Tuesday marked the lowest close for Brent and WTI since June 7, pushing both benchmarks into oversold territory for the first time since early June.
Efforts to reach a ceasefire between Israel and Hamas, following a plan outlined by U.S. President Joe Biden in May and mediated by Egypt and Qatar, have gained momentum recently.
Israeli Prime Minister Benjamin Netanyahu informed the families of hostages in Gaza that an agreement for their release could be near, even as fighting intensified in the Palestinian enclave.
Ceasefire negotiations in the Middle East and uncertain macroeconomic prospects in China are putting downward pressure on oil prices this week.
Additionally, the strengthening dollar, reaching a nine-day high against a basket of other currencies, weighed on prices.
European Central Bank (ECB) Vice President Luis de Guindos hinted at a possible rate cut in September, boosting investor sentiment, as lower borrowing costs support demand and crude prices.
ABOUT THE AUTHOR
See More
Sidebar rates
Add 3442
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals