Oil prices dropped on Monday after four weeks of gains due to potential progress in Gaza ceasefire talks, reducing Middle East tensions.
Brent crude futures fell to $86.18 per barrel, while U.S. West Texas Intermediate crude decreased to $82.71 per barrel.
Qatar and Egypt are mediating the U.S. ceasefire plan aimed at ending the nine-month conflict in Gaza.
In addition to the geopolitical developments, investors are also concerned about Tropical Storm Beryl’s potential impact on U.S. energy supplies.
Ports in Texas have closed in anticipation of the storm, which could disrupt oil and gas production and refinery operations.
Any significant disruptions to Texas refineries could support refined product prices, according to analysts.
Despite the recent dip, U.S. oil inventories are expected to show another large weekly draw, which could support prices.
Last week, WTI crude saw a 2.1% increase, driven by falling stockpiles and hopes of interest rate cuts amid easing inflation and slowing job growth.
Additionally, political developments in the UK, France, and Iran are being monitored for their impact on energy policies.
Source: Reuters