Oil prices fell more than $1 a barrel on Monday as cease-fire talks between Israel and Hamas in Cairo eased fears of a wider conflict in the Middle East, while US inflation data eased the prospect of an imminent reduction in the reference interest rate, reports Reuters.
Brent crude futures for June delivery, which expire on Tuesday, were down $1.25, or 1.4%, at $88.25 a barrel, according to the source.
The more active Brent crude contract for July delivery was down $1.01, or 1.14 percent, at $87.20 a barrel, the source added.
US West Texas Intermediate (WTI) futures fell by $1.19, or 1.4%, to $82.66 per barrel, the mentioned press agency informs.
Israeli airstrikes killed at least 25 Palestinians and wounded many others on Monday as Hamas leaders arrived in Cairo for a new round of talks with Egyptian and Qatari mediators, according to Reuters.
Egypt is full of hope, but is waiting for an answer about the plan from Israel and Hamas, said Egyptian Foreign Minister Sameh Shoukry, the source said.
“With little other fresh news, the possible cooling of the conflict in Gaza is causing oil prices to fall,” said John Evans of oil brokerage PVM, the source said.
Markets were also cautious ahead of the US Federal Reserve’s monetary policy meeting on May 1, which could indicate the direction of the central bank’s key interest rate decisions, Reuters notes.
