Oil prices fall 1% on Israel-Hamas ceasefire talks, U.S. inflation concerns
Oil prices fell in early Asian trading on Monday, erasing gains from Friday as Israel-Hamas peace talks in Cairo eased fears of a wider conflict in the Middle East and U.S. inflation data further dimmed the prospects of interest rate cuts anytime soon.
Brent crude futures fell by as much as $1, or 1.1% to $88.50 a barrel before ticking back up to $88.55 at 0149 GMT. West Texas Intermediate (WTI) futures were down 84 cents, or 1%, at $83.01 a barrel.
Stepped-up efforts to mediate a ceasefire between Israel and Hamas moderated geopolitical tensions and contributed to the weak opening on Monday, IG market analyst Tony Sycamore said. A Hamas delegation will visit Cairo on Monday for peace talks, a Hamas official told Reuters.
Israel's foreign minister said on Saturday a planned incursion into Rafah, where more than one million displaced Palestinians are sheltering, could be put off in the event of a deal that involves the release of Israeli hostages.
A White House spokesperson said Israel had agreed to listen to U.S. concerns about the humanitarian effects of the potential invasion.
Markets are also on watch for the U.S. Federal Reserve's May 1 policy review.
«Also playing a part are some nerves ahead of this week's Federal Open Market Committee meeting which is expected to come with a more hawkish tone,» Sycamore said.
U.S. inflation rose 2.7% in the 12 months through March, data on Friday showed, above the Fed's target of 2%. Lower inflation would have increased the likelihood of interest rate cuts, which would
