Oil prices saw a decline on Tuesday as diplomatic efforts for a Gaza cease-fire and uncertainty around the US Federal Reserve’s interest rate cut persisted. However, fears of Hurricane Beryl impacting oil production in the Gulf of Mexico prevented further price drops.
Brent crude traded at $85.57 per barrel, a 0.20% decrease, while West Texas Intermediate traded at $82.12, down by 0.25% from the previous session.
Cease-fire talks in the Middle East alleviated supply concerns, influencing market dynamics. The US State Department confirmed diplomatic efforts by its assistant secretary for Near Eastern affairs in the region, while Israeli and US security officials also engaged in discussions in Egypt.
Concerns over the Fed interest rate cut timing and a strengthening US dollar contributed to demand uncertainties. However, the potential impact of Hurricane Beryl on oil production and export facilities in the US limited further price declines.
Hurricane-induced power outages and port closures raised fears of disruptions in oil and gas exports, causing worry in the energy markets.