On Tuesday, crude prices dropped and hovered close to a 2-week low as Middle Eastern supply concerns eased after Israel accepted a proposal to discuss disagreements preventing a Gaza ceasefire deal, and as Chinese economic weakness weighed on fuel demand.
Brent futures for delivery in October dropped 27 cents, or 0.4%, to $77.39 per barrel. U.S. West Texas Intermediate (WTI) crude for delivery in September dropped 21 cents, or 0.3%, to $74.16 per barrel on its last day as the front-month contract.
The more actively traded WTI futures for delivery in October, which will become the front-month tomorrow, were about 27 cents lower at $73.39 per barrel.
Ritterbusch and Associates analysts said in a note they expected a volatile session on Tuesday as efforts toward a Gaza/Israeli ceasefire seem to be gaining enough momentum to announce an official deal.
U.S. Secretary of State Antony Blinken was in Egypt and pushed for progress toward a hostage release deal and Gaza ceasefire. Major differences still need to be ironed out in talks this week.
Svetlana Tretyakova, Rystad Energy’s senior analyst said that despite ongoing ceasefire talks, clashes between Hamas and Israel continue, and the markets will stay very sensitive to developments in the region.
