Oil prices fall amid Gaza ceasefire hopes, dollar rise
Date
7/21/2024 4:51:31 AM
(MENAFN) Last week, oil prices dropped to their lowest levels since mid-June, influenced by renewed hopes for a ceasefire in the Gaza Strip and a stronger U.S. dollar. brent crude prices fell by 2.82 percent, settling at USD82.63 per barrel, while U.S. West Texas Intermediate (WTI) crude futures decreased by 2.53 percent, reaching USD80.13 per barrel.
U.S. Secretary of State Antony Blinken announced on Friday that a ceasefire in Gaza appeared imminent. Blinken stated, "I think we're within the 10-yard zone and moving toward the ultimate goal of an agreement that would result in a ceasefire, return the hostages to their homes and put us on a better path to try to achieve lasting peace and stability." If achieved, this ceasefire could potentially lead the Yemeni Houthi group to halt their attacks on commercial ships in the Red Sea, as they had launched these attacks in support of the Palestinians in the Gaza conflict.
Additionally, the dollar index saw an increase following stronger-than-expected U.S. labor market and manufacturing data released this week. A stronger dollar tends to reduce demand for U.S.-denominated oil among investors holding other currencies, adding further pressure on oil prices.
Meanwhile, Chinese officials remarked on Friday that the economic targets reaffirmed at the conclusion of a key Communist Party meeting contain numerous "complex contradictions," suggesting a challenging path ahead for policy implementation. This adds another layer of uncertainty to the global economic landscape, impacting oil markets.
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