With the progress of the cease-fire agreement between Israel and Hamas, the geopolitical risk premium for crude oil has fallen, and oil prices have fallen below $83 a barrel.
On Monday, the New York Times reported that Israel was open to a cease-fire agreement for the initial release of 33 hostages, which was less than previously demanded, and the price of West Texas Intermediate crude oil fell 1% at one point.Tiger'sAdventure.6%.
Momentum for a cease-fire is gaining momentum and Antony Blinken, US secretary of state, said he would step up efforts to secure a ceasefire in Gaza during his visit to the region. The White House says Israel has agreed to listen to its concerns and postpone its attack on Rafah before meeting with the Americans.
However, the spot spread between the two closest Brent futures contracts is about $1 a barrel, a bullish indicator of recent supply constraints. Benchmark North Sea crude oil has also appeared in recent days.Tiger'sAdventureI bought a lot of food.
Crude oil prices have risen this year due to OPEC + production cuts and rising tensions in the Middle East. The Middle East accounts for about 1/3 of the world's oil. Meanwhile, changing expectations of US monetary policy are putting pressure on the demand outlook, with traders watching Wednesday's meeting of the Federal Reserve (fed) to assess the prospect of a rate cut this year.
Another bearish sign is that the premium of diesel and heating oil over crude oil has fallen to its lowest level in months because of fears of oversupply.
