OIL
Brent oil prices fell in early Monday trading as the market assessed reports of peace talks between Israel and Hamas. This development offers a glimmer of hope for de-escalating the conflict, thereby lessening the risk of its regional expansion. The spectre of a full-scale war in the Middle East, which could disrupt crude exports from one of the world's primary producing regions, has been the main driving force behind recent oil price increases. Traders may begin factoring in these expectations of de-escalation in Gaza, which could exert downward pressure on prices. Additionally, the outlook for further oil price hikes is dampened by the vigour of the US economy, characterised by persistent inflation and robust economic metrics, making it increasingly improbable for the Federal Reserve to lower interest rates this year. This scenario is poised to have repercussions on global economic growth, curbing oil consumption forecasts and adversely affecting barrel prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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