Oil Prices Amid US Diplomatic Mediation Between Israel And Hamas Expected to Rise

woke up Oil prices Amid US diplomatic mediation trying to reach a peace agreement between… Israel And Hamas, which would reduce geopolitical tension in the region The Middle East.

The price of Brent crude fell below the $89 per barrel level in trade, after rising 2.5% last week, while West Texas Intermediate crude also fell to around $83 per barrel. The US Secretary of State, Anthony Blinken, is going to add to his efforts to ensure peace in Gaza when he visited the area. The White House said that Israel agreed to listen to its concerns and postpone the attack on Rafah until the meeting with the American side.

The price of crude oil rose this year due to the coalition’s supply cuts.OPEC+“, along with growing tensions in the Middle East, a region responsible for producing about a third of the world’s oil.

Meanwhile, changes in US monetary policy expectations depend on demand, and traders will be closely watching the Federal Reserve’s meeting on Wednesday to assess interest rate prospects this year.

Expected rise in oil prices

But despite the uncertainty surrounding the outlook, spreads related to contract terms still reflect price expectations. The price difference between the two closest contracts for Brent crude remains more than a dollar per barrel if… Back orderBack order – Back-endBack order: A situation where the price of an asset in contracts with a shorter duration is higher than the prices traded in contracts with a longer duration. A back order may occur due to the current demand for the fund being higher than the contracts maturing in the coming months.. Although this number has fallen slightly from the highs it reached last week, it is still more than double the price difference seen a month ago.

OPEC Secretary General to Al-Sharq: Encouraging investment in oil is our strategic goal for market stability

“Geopolitical risks have decreased significantly,” said Warren Patterson, head of commodity strategy at ING Groep NV in Singapore. He pointed out that while the bank still expects a “large deficit” this quarter, “expectations for the second half of the year are still unclear, as they depend heavily on the policy of the OPEC+ alliance.”

AndRussia attacked Ukraine over the weekend was bombarded with heavy missiles, targeting natural gas infrastructure among several other targets. Kiev responded with drones targeting an oil refinery in the Krasnodar region. Russian state news agency TASS reported that the Slavyansk plant suspended operations due to a fire.