Oil rates fall amid ongoing diplomatic efforts to secure cease-fire agreement in Gaza
(MENAFN) Oil rates fell on Tuesday amid ongoing diplomatic efforts to secure a cease-fire agreement in Gaza and uncertainties surrounding the timing of the US Federal Reserve's (Fed) interest rate cut. However, the potential impact of Hurricane Beryl on oil production in the Gulf of Mexico limited further price declines.
At 10:17 a.m. local time (0717 GMT), international benchmark brent crude was trading at USD85.57 per barrel, down 0.20 percent from the previous session's closing price of USD85.75 per barrel. Similarly, the American benchmark West Texas Intermediate (WTI) traded at USD82.12 per barrel, reflecting a 0.25 percent decrease from the previous session's close of USD82.33 per barrel.
The Middle East, home to a significant portion of the world's oil reserves, is a focal point of supply concerns for the market. Cease-fire talks in the region have alleviated some of these concerns, putting downward pressure on oil prices. The US State Department announced on Monday that Barbara Leaf, the US Assistant Secretary of State for Near Eastern Affairs, is visiting the Middle East from July 8-14 to discuss a cease-fire deal in Gaza.
"The Assistant Secretary will meet with government officials on continued diplomatic efforts to achieve a cease-fire agreement, secure the release of all hostages, and ensure humanitarian assistance is distributed throughout Gaza," the State Department said.
Additionally, Ronen Bar, head of Israel's Shin Bet internal security services, and CIA Director William Burns arrived in Egypt on Monday for discussions on a Gaza cease-fire and a potential prisoner swap deal between Israel and the Palestinian group. These diplomatic efforts are seen as crucial steps towards stabilizing the region and reducing supply disruptions, thereby influencing oil prices.
Meanwhile, concerns over Hurricane Beryl's impact on oil production in the Gulf of Mexico have moderated the price decline, as market players remain cautious about potential disruptions to supply from this key production area.
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