Oil Dips As Israel/Hamas Ceasefire Talks Reportedly "Deadlocked"

by Ship & Bunker News Team
Monday April 8, 2024

A new round of ceasefire talks between Israel and Hamas, albeit reportedly deadlocked, were said to have caused a dip in oil prices on Monday,

Brent settled down 79 cents at $90.38 per barrel and West Texas Intermediate settled down 48 cents at $86.43: the first decline in five sessions for Brent and the first in seven for WTI.

Israel withdrew more soldiers southern Gaza as it and Hamas sent teams to Egypt for another attempt to hammer out a ceasefire, but a Hamas official said the talks were at a standstill.

Still, Giovanni Staunovo, analyst at UBS, said Israel’s decision to reduce its presence in Gaza “has reduced somewhat the geopolitical risk premium.”

However, Israel declaring that a date had been set for an invasion of Rafah all but ensures that oil faces volatility moving forward, as does Tehran vowing revenge for Israel conducting a lethal missile strike against its consulate in Damascus.

For its part, Bloomberg regarded Monday’s oil price dip as a “breather,” noting that “The broader outlook remains indicative of rising prices; timespreads are strong, volatility has recovered, and funds are going long on crude.”

The news agency added, “On Friday, volume for bullish oil call options — which profit when prices gain — was at the second-highest level on record.”

In other oil news on Monday, Exxon said it will suspend oil production for several weeks at two platforms offshore Guyana later this year in order to connect them to a new $1 billion pipeline expected to bring associated natural gas onshore to a gas-fired power plant.

Also, media reported that Shell is considering shifting its listing from the London Stock Exchange to the New York Stock Exchange, partly due to investor apathy for supermajor oil firms amid the relentless attack on fossil fuels by Europe activists and politicians.

Analysts theorized that if Shell makes the switch it could lead to an exodus and make things uncomfortable for supermajor BP and commodities trader Glencore.