Singapore, April 8 – Oil prices fell on Monday morning after Israel withdrew additional troops from the southern Gaza Strip and committed to new ceasefire talks in the six-month conflict.
The price of North Sea Brent crude for June delivery fell to $89.86 (82.89 euros) per barrel (1 barrel = 159 liters) by 7:25 a.m. SELC. This represents a decrease of $1.31 or 1.44% compared to the previous close. The price of US light crude WTI with a May contract fell by $1.21 or 1.39% to $85.70 per barrel.
The Israeli government and the Palestinian Hamas movement sent negotiators to Egypt for a new round of talks, easing tensions that drove oil prices up by more than 4% last week. The OPEC+ oil group also contributed to last week’s rise, announcing that its members will continue to cut oil production.
(1 EUR = 1.0841 USD)
Key factors affecting oil prices:
- Situation in the Gaza Strip:Â The withdrawal of Israeli troops and the ceasefire efforts have eased tensions in the region, leading to lower oil prices.
- OPEC+ oil production:Â The OPEC+ group has announced that it will continue to cut oil production, which is supporting oil prices.
- Global oil demand:Â Oil demand is affected by global economic growth and activity.
Oil price outlook:
The future development of oil prices will depend on the evolution of the geopolitical situation, global economic growth, and OPEC+ activity.
Note:
- 1 barrel = 159 liters
- 1 EUR = 1.0841 USD
Sources:
- TASR:Â https://www.tasr.sk/
- Reuters:Â https://www.reuters.com/
- Bloomberg:Â https://www.bloomberg.com/
