Investing.com – Oil prices edged higher on Monday, after swinging wildly on dwindling hopes for an end to the war in Gaza, as Israeli Prime Minister Benjamin Netanyahu reportedly said the deal accepted by Hamas was far from met Israel’s demands.
At 2:30 PM ET (18:30 GMT), it rose 0.5% to settle at $78.48 per barrel, after falling below $78 per barrel intraday. While oil prices rose 0.5% to $83.33 per barrel.
A ceasefire agreement falls far short of the requirements, Netanyahu says
Israeli Prime Minister Benjamin Netanyahu said the deal, brokered by Egypt and Qatar, was “far from meeting Israel’s demands,” in a blow to hopes for a ceasefire in Gaza. Hopes for a ceasefire had increased earlier in the day after Hamas said so. had accepted the proposal.
Netanyahu’s comments come just as the Israeli army begins its offensive in Rafah, with “targeted attacks,” media said.
Signs that a deal may not be as close as previously thought forced traders to lower their bets, easing geopolitical tensions in the Middle East that kept a supply risk premium embedded in oil prices.
The interest rate cut and increases in Saudi oil prices are also keeping crude oil losses in check
The downward momentum in oil prices was also suppressed by renewed bets on a Federal Reserve rate cut in September. Sooner or later, interest rate cuts could help keep economic growth intact and support oil price demand.
Saudi Arabia announced it would increase the official selling price for its crude oil to northwestern Europe, the Mediterranean and Asia in June, a third monthly increase in a row, reflecting confidence in demand during the summer of the de facto OPEC leader.
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Ambar Warrick and Scott Kanowsky contributed to this report.
