Brent crude falls by more than $2/bbl on hopes over Israel-Hamas ceasefire talks

SINGAPORE (ICIS)–Brent crude fell by more than $2/barrel on Monday as tensions in the Middle East eased after Israel’s withdrew more troops from southern Gaza and signaled that it was willing to resume talks for a ceasefire to end the six-month conflict.

Product ($/bbl)	Latest at 01:08 GMT	Previous	Change
Brent June	88.99	91.17	-2.18
WTI May	84.94	86.91	-1.97

On 5 April, benchmark crude prices rose to seven-months as rising tensions in the Middle East were fuelling fears of supply disruption, with further concerns about Iranian crude exports.

Israel and Hamas have dispatched delegations to Egypt ahead of the Eid holidays to engage in new discussions regarding a potential ceasefire.

Eid ul-Fitr holidays mark the end of the Muslim fasting month of Ramadan.

Since the beginning of the year, Israel has been reducing its presence in Gaza to ease the burden on reservists as it faces mounting pressure from its ally, the US, to address the humanitarian situation, particularly following recent killing of seven aid workers.

Israeli defense minister Yoav Gallant on 7 April said that Israel is prepared to manage any scenario with Iran, following Tehran’s threat to respond to the assassination of Iranian generals on 1 April in the Syrian capital of Damascus.

Crude prices have been on the rise in recent weeks due to anticipated constraints on oil supplies.

OPEC and its allies (OPEC+) have re-affirmed their commitment to maintaining production cuts until the end of June.

Additionally, Russia, a major oil producer, has indicated its intention to implement further reductions in production.

The fuel production in Russia was further hindered by Ukrainian strikes targeting the nation’s oil infrastructure, resulting in the shutdown of several major refineries.

Market participants now await release of monthly oil reports from the International Energy Agency (IEA), US Energy Information Administration (EIA) and OPEC this week for better clarity on supply and demand forecasts for this year.