Crude Continues Decline As Pressure Builds For Hamas To Accept Proposal

After falling close to 2.5% on Monday, oil prices have continued to slide today with WTI down 0.8% to $73.06/bbl and Brent 0.8% lower at $77.04, close to their intraday lows. The Middle East risk premium is unwinding further after Israel accepted the US’ “bridging proposal” for a ceasefire in Gaza and pressure is building on Hamas to do the same. The USD index is 0.1% higher.

• Benchmarks are now below 50-, 100- and 200-day moving averages.
• While concerns over China’s oil demand continue to weigh on prices, attention is also on the supply side ahead of OPEC’s plans to reduce output cuts from October, which the group has said are flexible. US industry data on inventories is released later today and will be watched for signs of weakness.
• Later the Fed’s Bostic and Barr speak and the August Philly Fed non-manufacturing index is released. Final July euro area CPI and Q2 negotiated wages as well as Canada’s July CPI print.