April 29, 2024 17:46 GMT
WTI Sinking Back Towards Intraday Low
OIL
WTI is heading back towards its intraday lows as the risk premium associated with potential disruption to Middle Eastern supply shrinks further on the day.
- WTI JUN 24 down 1.5% at 82.62$/bbl. The intraday low is currently $82.51/b
- WTI JUN 24-JUL 24 down 0.13$/bbl at 0.59$/bbl
- The market sees momentum building towards a cease-fire with US Secretary of State Antony Blinken currently in the region.
- Wires carrying comments from Blinken saying that Hamas has in front of them a proposal that is "extraordinarily generous". Says that Hamas "needs to decide, and it needs to decide quickly." Hamas representatives are due in Cairo today to discuss the latest proposal.
- The region is the source of around one third of the world’s oil. The main concern is that the war in Gaza spreads to a wider regional war and thus impacts production. The worst-case scenario would involve a conflict with Iran, hitting production in the Persian Gulf.
- Expectations that the Fed will postpone US rate cuts are also weighing on the demand side.
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