Oil prices muted amid Gaza ceasefire talk; OPEC+ maintains supply cuts
Investing.com-- Oil prices rose slightly in Asian trade on Monday as the OPEC+ maintained its current pace of production cuts until the second quarter, although calls from top U.S. officials for an immediate Israel-Hamas ceasefire dulled crude’s momentum.
Still, oil markets were sitting on strong gains over the past two weeks, benefiting from expectations of tighter supplies this year, while optimism over an eventual decline in U.S. interest rates also aided sentiment.
Brent oil futures expiring in May rose 0.2% to $83.67 a barrel, while West Texas Intermediate crude futures for May rose 0.1% to $79.16 a barrel by 20:10 ET (01:10 GMT). The April WTI futures contract crossed $80 a barrel for the first time since early-November.
Oil’s momentum was stalled largely by U.S. Vice President Kamala Harris on Sunday demanding that Hamas immediately accept a six-week ceasefire, while also calling on Israel to offer more aid to Gaza.
Her comments were the strongest yet by a senior U.S. official on the ongoing war, and potentially signaled diplomatic intervention by the country in the long-running conflict.
Harris’ comments also came just days after President Joe Biden called for a ceasefire during the Muslim holy month of Ramadan. The White House is reportedly working on brokering a ceasefire agreement by as soon as this week.
The Israel-Hamas war, which has caused wider disruptions in the Middle East, has been a key point of support for oil prices, especially on expectations that crude supplies from the oil-rich region will be disrupted by a wider conflict.
Attacks on vessels in the Red Sea by the Yemeni Houthis, in solidarity with Palestine, had furthered this notion, with the Houthis sinking a vessel for the first time ever
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