Oil prices fall on Gaza peace talks, impact of Hurricane Beryl; Brent crude at $86.12/bbl

Oil prices fell on Monday after four weeks of gains as worries about supply disruptions eased amid hopes of a Gaza ceasefire deal. However, the potential impact of Hurricane Beryl on deliveries limited the decline.

By 12:30 GMT, Brent crude futures were down 42 cents, or 0.5 percent, at $86.12 a barrel. U.S. West Texas Intermediate (WTI) crude was down 52 cents, or 0.63 percent, at $82.64 a barrel.

“Crude oil showed significant volatility, falling from highs amid cease-fire talks between Israel and Gaza. The Israeli prime minister’s office announced Friday that the head of Israel’s Mossad has returned from Doha after an initial meeting with mediators in Gaza. They are trying to reach an agreement for a ceasefire and the release of the hostages, with negotiations to resume next week. Following this news, the risk premium for crude oil fell in international markets. However, a weaker dollar index and a stronger euro and pound supported prices lower. We expect crude oil prices to remain volatile in today’s session. VP Merchandise, Mehta Equities Ltd

What is weighing on the price of crude oil?

Negotiations for a US-proposed ceasefire to end the nine-month conflict in Gaza are currently underway, with Qatar and Egypt acting as mediators.

Meanwhile, in the US, Hurricane Beryl made landfall near Matagorda, Texas on Monday. In preparation for the hurricane, the ports of Corpus Christi, Houston, Galveston, Freeport and Texas City closed Sunday.

Texas is the largest producer of oil and natural gas in the US. The port closures could temporarily halt exports of crude oil and liquefied natural gas, disrupt oil shipments to refineries and affect fuel deliveries from those facilities, according to analysts.

WTI rose 2.1 percent last week after Energy Information Administration data showed a decline in crude oil and refined product inventories for the week ended June 28.

IG’s Sycamore noted a strong possibility of another significant weekly pullback in US oil stocks during peak season.

Investors were also monitoring the potential impacts on geopolitics and energy policies from last week’s elections in Britain, France and Iran.