Geopolitics Driving Oil Prices Again As Gaza Negotiations To Continue

Oil prices are off their intraday highs and began to moderate as the US dollar rose. They are still up moderately during the APAC session. Negotiations on a Gaza truce will continue in Egypt after Hamas responded. A deal is likely to drive crude lower as the geopolitical risk premium unwinds further. The USD index is up 0.1%.

• WTI is up 0.3% to $78.71/bbl after falling to $78.55 following a high of $79.02. Brent is 0.3% higher at $83.57 after a low of $83.36 and a high of $83.82.
• Geopolitics are currently the focus of energy markets. A “softened” version of the US/Egyptian brokered proposal has been agreed to by Hamas, according to Reuters. This amended offer has been unanimously rejected by Israel’s war cabinet but it will send negotiators back to Egypt. Israel has begun operations in Rafah.
• Last week the US recorded a strong crude inventory build and so the API data released later today will be monitored closely given the upcoming driving season. The EIA also releases its Short-Term Energy Outlook today. BP and Aramco release earnings as well which may include commentary on the outlook.
• Later the Fed’s Kashkari speaks and March US consumer credit is released. There are also March German factory orders and euro area retail sales.