Oil prices lower on Israel-Hamas peace talks

ISLAMABAD
Crude oil price fell on Monday amid peace talks between Israel and Hamas in Cairo.
As of 1330 hours GMT, Brent, the international benchmark for two-thirds of the world’s oil, slipped $0.67 (-0.75 percent) to reach $88.83 a barrel. Similarly, the West Texas Intermediate (WTI), the main oil benchmark for North America, went down by $0.62 (-0.74 percent) to $83.23 a barrel.
On the other hand, the price of Arab Light increased by $0.65 (+0.73 percent) to reach $90.23 a barrel. Similarly, the price of Russian Sokol increased by $0.86 (+1.06 percent) to $81.97 a barrel. On the other hand, the price for Opec Basket decreased by $0.06 (-0.07 percent) to $88.39 a barrel.
Hamas leaders arrived in Cairo for a new round of talks with Egyptian and Qatari mediators. Egypt is hopeful but waiting for a response on the plan from Israel and Hamas, Egyptian Foreign Minister Sameh Shoukry said.
Meanwhile, US inflation rose higher than anticipated last month, dealing another setback for the US Federal Reserve’s expectations for a soft landing. Lower interest rates stimulate economic growth, resulting in higher crude demand.
The Personal Consumption Expenditures (PCE) Price Index rose 0.7 percent last month, the Commerce Department reported on Friday. On an annual basis, headline inflation rose 2.7 percent. Core PCE, which excludes food and energy, rose 2.8 percent annually, unchanged from February but above economists’ expectations.
The central bank is anticipated to implement three interest rate cuts this year to support growth in the world’s largest economy. However, markets now expect the Fed to cut rates by only 25 basis points this year, according to CME’s FedWatch tool. That would bring the Fed’s target range down to 5 percent and 5.25 percent.
Meanwhile, US crude inventories, an indicator of fuel demand, decreased by 6.4 million barrels in the week ending April 19, according to the US Energy Information Administration data. Oil prices have gained more than 16 per cent this year driven in part by output cuts implemented by the Opec+ group of crude producers.
Fears of a potential disruption of crude shipments from the Middle East amid the continued geopolitical uncertainties has also pushed prices higher