biedexmarkets.com — Oil prices settled higher Monday, after swinging wildly on uncertainty about the outlook for the Gaza war as Israel reportedly said it was unwilling to OK a “softened” ceasefire deal brokered by Egypt and Qatar that was accepted by Hamas.
At 14:30 ET (18:30 GMT), rose 0.5% to settle at $78.48 a barrel, after dipping below $78 a barrel intraday. While rose 0.5% to $83.33 a barrel.
Israel reportedly unwilling to OK ‘softened’ ceasefire deal
An Israeli official told Reuters on Monday that the deal, which was brokered by Egypt and Qatar and still required Israel’s acceptance was a “softened” version of an earlier Egyptian proposal.
The official further told Reuters that the Hamas’ announcement “appears to be a ruse to cast Israel as the side refusing a deal.”
Hamas’ acceptance of the proposal deal comes just as Israel continues to prepare for the launch of an offensive of Rafah, the southernmost city in Gaza.
The reports that a deal may not be as closed as previously believed, forced traders to cut their bets easing geopolitical tensions in the Middle East that have kept an supply risk premium embedded in oil prices.
Rate-cut, Saudi oil price hikes also keep lid on crude losses
The downside momentum in oil prices was also stifled by renewed bets on a September rate cut by the Federal Reserve. Sooner rather than later rate cuts could help keep the economic growth intact, supported demand for oil prices.
remove ads
.
Saudi Arabia announced that it would raise the official selling price for its crude to Northwest Europe, the Mediterranean and Asia in June, a third-straight monthly hike, pointing to confidence in demand during the summer from the de facto OPEC leader.
Ambar Warrick, Scott Kanowsky contributed to this report.
