Oil prices decline amid Israel-Hamas peace talks, Fed rate cut expectations
Oil settles higher on Middle East supply woes, US inflation data limits gains; Brent at $89/bbl “Optimism prevailed from the start of the trading session as cooling of US bond yields and letdown in middle-east conflict coupled with a drop in crude oil prices generated a lot of enthusiasm amongst the investors. With the polling season on, the market is hoping for a clear mandate in favour of the ruling party. The two-day Fed's monetary policy meeting starting Tuesday will be closely watched by global investors, although markets doesn't expect any change in the policy outcome," said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.
Also read: Gold prices decline as rate cut hopes ease, focus shifts to upcoming Fed meeting “Crude oil prices exhibited significant volatility last week, rebounding from their lows amidst global supply concerns and a decrease in U.S. oil inventories. Heightened tensions in the Middle East following Israel's escalation in Gaza renewed worries about global oil supply.
The U.S. crude oil stocks experienced a larger-than-expected decline, according to the U.S. EIA, with inventories dropping by 6.4 million barrels for the week ending on April 19, 2024, compared to an anticipated build of 1.6 million barrels.
This unexpected decrease in stocks, coupled with increased tensions in the Middle East, provided support to oil prices at lower levels. However, the disappointing U.S. GDP data, surge in U.S.
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