Oil prices fell for a third time on Wednesday as hopes rose for a Middle East ceasefire deal and crude stocks and production rose in the United States, the biggest consumer. of oil in the world.
Brent oil futures for July fell 70 cents, or 0.8 percent, to $85.63 a barrel by 0456 GMT. U.S. West Texas Intermediate crude for June fell 75 cents, or 0.9%, to $81.18 a barrel.
Expectations that a ceasefire deal between Israel and Hamas could be in sight, following a new Egyptian-led push to revive stalled negotiations between the two, have pushed oil prices on the decline.
“The possibility of a ceasefire agreement between Israel and Hamas has allayed fears of an escalation of the conflict and any possible disruption to supplies,” ANZ analysts said in a note on Wednesday .
However, Israeli Prime Minister Benjamin Netanyahu
promised
On Tuesday, Israeli Prime Minister Benjamin Netanyahu vowed to launch an assault on the town of Rafah in the southern Gaza Strip regardless of Hamas’ response to the latest proposals to stop the fighting and return Israeli hostages .
Rising U.S. crude oil inventories and increased crude supply also weighed on prices.
U.S. production reached 13.15 million barrels per day (bpd) in February, up from 12.58 million bpd in January, the largest monthly increase in about three and a half years, the US Administration said on Tuesday. Energy Information Administration.
“Continuing signs of inflation have also led to concerns about crude oil demand. This comes ahead of the US driving season, where gasoline demand is rising sharply,” ANZ analysts said .
Organization of the Petroleum Exporting Countries (OPEC) output is expected to fall by 100,000 bpd in April to 26.49 million bpd, keeping oil from sliding further, according to a Reuters survey on Tuesday.
The survey reflects falling exports from Iran, Iraq and Nigeria, amid voluntary supply cuts by some OPEC members in line with the broader OPEC alliance. OPEC+. (Reporting by Laila Kearney in New York and Sudarshan Varadhan in Singapore; Editing by Christian Schmollinger and Kim Coghill)
