Oil futures saw a decline this Monday, influenced by a cooling of geopolitical tensions in the Middle East and market anticipation of upcoming U.S.
economic indicators.Currently, discussions about a truce between Israel and Hamas are ongoing, focusing on the release of hostages held since last October.
Meanwhile, escalations with Iran have not progressed.This backdrop shifts the markets attention to crucial economic updates from the United States scheduled for this week.On the New York Mercantile Exchange, West Texas Intermediate (WTI) crude for June delivery fell by 1.45%, losing $1.22 to close at $82.63 per barrel.Similarly, Brent crude for July delivery decreased by 1.14%, shedding $1.01 to settle at $87.20 per barrel on the Intercontinental Exchange.Oil Prices Drop as Middle East Tensions Diminish.
(Photo Internet reproduction)Decreased Middle East tensions caused oil futures to fall, refocusing on supply-demand balance.The market is bracing for a busy week, highlighted by the Federal Reserves decision on interest rates on Wednesday.
The U.S.
payroll report for April is due on Friday.Post-advertisement observations from Ritterbusch noted a contraction in the Brent June-July spread to $1.30 per barrel from the previous Friday.This indicates a shift by holders of long positions towards the more favorable pricing in July.Rystad Energy predicts a potential $150 billion boost for the oil industry after its strongest first quarter in five years.
This would be in merger and acquisition activities for the remainder of 2024.Already surpassing $64 billion this year, the merger activity marks the most dynamic first-quarter performance since 2019.
It shows a 145% increase from the first quarter of 2023.This surge is primarily propelled by consolidation within the U.S.
shale sector, setting a vigorous pace for industry dynamics.