Oil prices sank : Oil prices down on Gaza ceasefire talks, flat on the week

Oil prices sank


Oil prices sank : Oil prices fell on Friday and remained unchanged for the week as the prospect of a ceasefire in Gaza undermined oil benchmarks, although the war in Europe and a reduced US rig count cushioned the drop

Oil prices did indeed see some downward movement on Friday due to progress in ceasefire talks between Israel and Hamas in Gaza. However, the decline wasn’t significant, and overall, prices remained flat for the week.

Here’s a quick breakdown:

  • Price drop: Oil prices fell slightly on Friday, with Brent crude settling around $85.43 and US crude settling around $80.63 per barrel.
  • Flat for the week: Despite the Friday dip, prices ended the week roughly unchanged compared to the previous week. Oil prices sank

The potential for a ceasefire eased concerns about a wider conflict in the Middle East, which could have disrupted oil supplies and driven prices up. However, other factors, like the ongoing war in Ukraine and a decrease in the US rig count, provided some support for oil prices, preventing a steeper decline. Oil prices sank

Oil prices slipped on Friday and were flat on the week as the possibility of a ceasefire in Gaza weakened crude benchmarks, while the war in Europe and shrinking U.S. rig count cushioned the fall.

Brent futures for May delivery settled at $85.43, losing 35 cents. U.S. crude settled at $80.63 a barrel, falling 44 cents. Both benchmarks logged less a than 1% change on the week. Oil prices sank

”Everyone is watching for what the weekend will bring with Gaza,” said John Kilduff, partner with Again Capital LLC, adding that successful peace talks would prompt Yemen’s Houthi rebels to allow oil tankers to pass through the Red Sea. Oil prices sank

U.S. Secretary of State Antony Blinken said on Thursday he believed talks in Qatar could reach a Gaza ceasefire agreement between Israel and Hamas. Oil prices sank

Blinken met Arab foreign ministers and Egypt’s President Abdel Fattah El-Sisi in Cairo as negotiators in Qatar centred on a truce of about six weeks.

This news reflects two opposing forces influencing the oil market: Oil prices sank

  • Ceasefire Talks in Gaza Weakening Demand: The possibility of a truce between Israel and Hamas in Gaza led some investors to believe there would be less disruption to oil supplies in the Middle East. This anticipation of a calmer region caused oil prices to fall. Oil prices sank
  • Offsetting Factors: Despite the potential ceasefire, other factors kept oil prices from dropping significantly. These include:
    • The ongoing war in Europe, which is still disrupting energy supplies and keeping a floor under prices.
    • A decrease in the number of active oil rigs in the United States, which suggests potentially lower future production.
    • A stronger US dollar. Since oil is priced in dollars, a stronger dollar makes it more expensive for buyers using other currencies, reducing demand slightly. Oil prices sank

Overall, the news reflects a delicate balance in the oil market. While a potential ceasefire could lead to lower prices in the long run, other factors are currently at play. Oil prices sank


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