|
Brent crude futures for June, which expire on Tuesday, were down
by 51 cents, or 0.6%, to $88.99 a barrel by 0950 GMT. The more
active July contract fell 27 cents, or 0.3%, to $87.94 a barrel.
U.S. West Texas Intermediate (WTI) futures were down 22 cents,
or 0.3%, at $83.63 a barrel.
A Hamas delegation will visit Cairo on Monday for talks aimed at
securing a ceasefire, a Hamas official told Reuters on Sunday.
"With little other fresh news, the possible cooling of the Gaza
environment sees oil prices slip," said John Evans of oil broker
PVM.
Meanwhile, Israeli airstrikes on the southern Gaza city of Rafah
on Monday killed at least 20 Palestinians and wounded many
others.
Markets were also on watch for the U.S. Federal Reserve's May 1
monetary policy review.
"The language and forward forecasts will be pored over by all
market participants with magnifying glasses," PVM's Evans said.
Ahead of that, on Friday U.S. inflation data put a damper on
rate cuts in the near future, rising 2.7% in the 12 months
through March, above the Fed's target of 2%. Lower inflation
would have increased the likelihood of interest rate cuts, which
tend to stimulate economic growth and oil demand.
"The sticky U.S. inflation sparks concerns for
'higher-for-longer' interest rates", leading to a stronger U.S.
dollar and putting pressure on commodity prices, independent
market analyst Tina Teng said.
A stronger dollar makes oil more expensive for those holding
other currencies.
Further weighing on the outlook for oil demand, China's
industrial profit growth slowed down in March, official data
showed on Saturday, in the latest sign of frail domestic demand
in the world's second largest economy.
But oil prices could swing higher again if U.S. inventory data
and China's PMI index show improvements this week, Teng said.
(Reporting by Deep Vakil in Bengaluru, Colleen Howe and Mohi
Narayan; editing by Michael Perry and Jason Neely)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
