Crude oil prices fell more than 1% at the beginning of the week. At the top of the day, prices were under pressure as the focus continued on progress in ceasefire talks between Israel and Hamas.
Additionally, rising expectations of a prolonged hike in US interest rates weighed on the outlook ahead of this week’s Federal Reserve. meeting WTI crude futures fell to around $82.65 a barrel, extending the previous session’s losses as peace talks between Israel and Hamas eased some fears of a wider conflict in the Middle East.
The market is awaiting a response from the Hamas leadership to the phased truce proposal that Israel presented in Cairo over the weekend.
Still, Israeli airstrikes killed dozens of Palestinians on Monday and continued Houthi attacks on maritime traffic south of the Suez Canal kept investors on edge.
Media reports said that Israel had offered a 40-day ceasefire offer to Hamas, as delegates from the two met in Egypt for renewed talks. The Hamas delegation left Cairo, and will return with a written response to the proposal, reports said.
The proposal offers a 40-day ceasefire in exchange for the return of hostages and the return of displaced families to northern Gaza. It also includes new wording aimed at satisfying Hamas’ need for a lasting ceasefire.
Fears of supply disruptions in the Middle East have been the main driver of oil price gains in recent weeks. But that perception softened somewhat when the conflict between Iran and Israel did not give way to war.
In addition, markets cautiously awaited a policy decision from the US Federal Reserve on Wednesday, and persistent inflation weakened the prospect of an interest rate cut.
Technical Outlook – Crude Oil
Crude oil retreated from the day’s high 7005 and settled at 6899, down 1.43%.
Since last week, Prices facing the resistance 7055 and forming indecisive candle stick on the chart. Now prices trading near to crucial support 6875 a break below it prices may expect to losses towards 6780-6720.00.
On the upside, immediate resistance is seen at 7055 a closing above it prices will expect to recover towards 7120-7220.00
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Commodity Samachar
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