Oil prices decline before US election, attempts to negotiate ceasefire in Gaza

(MENAFN) On Tuesday, oil prices experienced a slight decline, reflecting ongoing uncertainty in the market as the US presidential election looms and reports indicate continued attempts to negotiate a cease-fire in Gaza. The international oil benchmark, Brent crude, fell by 0.2 percent, settling at USD75.04 per barrel around 10:52 am local time (0752 GMT), compared to the previous session's closing price of USD75.19. Similarly, the US benchmark West Texas Intermediate (WTI) also saw a 0.2 percent drop, trading at USD71.25 per barrel, down from USD71.42 at the last close.

As millions of Americans prepared to cast their votes for the presidency, Congress, state governors, and local officials, analysts noted that investor sentiment was cautious, with many avoiding high-risk positions ahead of the election. The uncertainty surrounding the electoral outcome has led market participants to be particularly attentive to potential shifts in US economic policy, which could have significant implications for oil demand.

In addition to the electoral concerns, the market is also bracing for an important announcement from the US Federal Reserve regarding interest rates, set to be revealed on Thursday. This decision is anticipated to provide insight into the Fed's perspective on economic growth, further influencing market dynamics. Investors are particularly aware that the economic landscape will likely evolve based on the election results, impacting the outlook for oil consumption in the United States, the world's largest consumer of oil.

Overall, the interplay between the upcoming election, geopolitical tensions, and monetary policy decisions continues to shape the oil market, leading to fluctuations in prices as traders assess the potential outcomes and their implications for future demand.

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