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Oil Prices Lower On Hopes Of Gaza Ceasefire

OIL

Increased pressure on Israel from the US for a truce in Gaza and hostage deal has seen oil prices fall during the session as the geopolitical risk premium unwinds. The stronger greenback also weighed on crude earlier but when the USD index came off its high oil prices troughed. The USD index is down 0.2% driven by the yen rebound.

  • WTI is down 0.8% to $83.21/bbl above support at $81.03. It fell to a low of $82.96 but breaks below $83 have been short lived. Brent is 0.8% lower at $87.54/bbl after a low of $87.31, above support at $85.88.
  • US secretary of state Blinken has just arrived in Saudi Arabia for Gaza ceasefire talks. The US has said that Israel will delay a Rafah offensive until it has met with Blinken.
  • Today the April Dallas Fed manufacturing, European Commission April survey and preliminary April German CPI data print. The ECB’s de Guindos speaks later. The focus of the week will be on Wednesday Fed announcement and Friday’s April payrolls to gauge the rate outlook and thus oil demand prospects.

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