Crude Falls on Hopes For Gaza Ceasefire

Crude oil is slipping during European afternoon, followed by headlines that a Whitehouse ceasefire proposal has been passed to Hamas for consideration.

• Brent JUN 24 down 1.8% at 89.54$/bbl
• WTI MAY 24 down 1.6% at 85.52$/bbl
• National Security Council spokesperson John Kirby said that the latest ceasefire/hostage exchange proposal, brokered in Cairo over the weekend with assistance by CIA Director Bill Burns, has been presented to Hamas and is "awaiting a response."
• This gives the market some hope of some easing in tensions within the region, where any expansion of the war could jeopardise oil supply.
• Kirby's comments appear to support reports that the ultimatum that Biden delivered to Israeli Prime Minister Benjamin Netanyahu last week has pushed Israel slightly closer to a ceasefire compromise and slightly further away from an IDF operation in Rafah.
• This has brought prices back down below $90/b, although the continued supply cuts by OPEC+ remain a bullish factor, even were geopolitical tensions to start abating.