Oil prices fall as Gaza ceasefire talks outpace summer fuel demand

Oil prices fell on Friday as the growing possibility of a cease-fire deal in Gaza outweighed strong summer fuel demand and potential supply disruptions from hurricanes in the Gulf of Mexico, News.Az reported, citing Reuters.

Brent crude futures were down 89 cents, or 1.02 percent, at $86.54 a barrel after hitting their highest level since April earlier in the session. U.S. West Texas Intermediate (WTI) crude futures settled at $83.16 a barrel, down 72 cents, or 0.9 percent.

For the week, Brent rose 0.4%, while WTI futures rose 2.1%.

The head of Israel’s Mossad has returned from Doha after an initial meeting with mediators trying to reach a deal on a ceasefire and the release of hostages in Gaza, and negotiations will resume next week, Prime Minister Benjamin Netanyahu’s office said on Friday .

Netanyahu’s office said in a statement that gaps remain between the parties.

“Obviously a discovery there would help calm the waters,” said John Kilduff, partner at Again Capital. An easing of conflict in the Middle East lowers the risk premium on barrels in the region and affects oil prices.

WTI was not settled on Thursday due to the Independence Day holiday, leaving room for thin trading, but prices rose this week on strong expectations of US summer oil demand

The US Energy Information Administration (EIA) on Wednesday reported a much larger than expected stockpile draw of 12.2 million barrels last week, compared with analysts’ expectations for a draw of 700,000 barrels.

On the supply front, Hurricane Beryl, a Category 2 storm, made landfall in Mexico after killing at least 11 people in the Caribbean, downing buildings and power lines on several Caribbean islands.

News.Az