(Bloomberg) — Oil declined for the fourth time in five sessions as traders tracked US-led efforts to secure a cease-fire in the 10-month old conflict between Israel and Iran-backed Hamas in the Gaza Strip.
Brent fell toward $79 a barrel after shedding almost 2% on Friday, while West Texas Intermediate was near $76. While Israel had initially voiced cautious optimism over the prospect of a pause in the fighting — which could defuse tensions across the key crude-producing region — fresh disagreements are surfacing. Talks are set to resume in Cairo later this week.
Adding to the crude market’s recent bearish tone have been further signs of softness in China, the top oil importer. Economic growth has slowed, and progress toward clean-energy goals has eroded some product demand.
Crude remains modestly higher this year, helped by OPEC+ output curbs and expectations that the Federal Reserve may soon lower borrowing costs — a potential support for energy demand. This week, investors will be on alert for clues on the path forward for US monetary policy when Fed Chair Jerome Powell addresses the annual central bankers’ gathering in Jackson Hole, Wyoming.
Elsewhere, production at Libya’s Waha oil field has returned to normal levels of about 300,000 barrels a day after pipeline maintenance was completed earlier than expected, according to people with knowledge of the situation. The nation’s Sharara field, however, remains offline.
Timespreads suggest less tight, tight near-term conditions. While the gap between Brent’s two nearest contracts remains in a bullish, backwardated structure at 81 cents a barrel, that’s down from more than $1 a month ago.
More stories like this are available on bloomberg.com
©2024 Bloomberg L.P.
. Read more on Markets by NDTV Profit.