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19/07/24
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Crude Prices Drop $1 Per Barrel on Easing Supply Fears, Gaza Ceasefire in Sight
On Friday, crude prices dropped on renewed hopes of a Gaza ceasefire, while the strong dollar further weighed on oil markets.
Brent crude prices were $1.11 or 1.3% lower, at $84 per barrel. U.S. West Texas Intermediate crude futures fell $1.08 or 1.3%, to $81.74 per barrel.
On Friday, Antony Blinken, the U.S. Secretary of State said a long-sought ceasefire between Hamas, the Palestinian militant group, and Israel was close.
At the Aspen Security Forum in Colorado, Blinken said there were still some issues that had to be negotiated and resolved.
The Gaza war has resulted in investors pricing in a risk premium when trading cruse, as tensions may threaten global supplies.
Matador Economics’ chief economist, Tim Snyder, said geopolitics were beginning to ease slightly and that ought to work in oil’s favor, after the news of this ceasefire.
An analyst at Price Futures Group, Phil Flynn, said the U.S. dollar index rose after better-than-expected U.S. manufacturing and labor market data earlier this week, pressuring oil prices.
A stronger U.S. dollar decreases demand for dollar-denominated oil by buyers that hold other currencies.
On Friday, Chinese officials acknowledged the comprehensive list of economic goals re-emphasized at the end of the Communist Party’s meeting contained many contradictions.
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