By Georgina McCartney
HOUSTON (Reuters) -Oil prices fell more than $2 on Friday to their lowest level since mid-June as investors eyed a possible ceasefire in Gaza, while a strengthened dollar pushed values lower.
prices fell $2.48, or 2.9%, to $82.63 per barrel. U.S. West Texas Intermediate crude futures fell $2.69, or 3.3%, to $80.13.
US Secretary of State Antony Blinken said a long-sought ceasefire between Israel and the Palestinian militant group Hamas was in sight.
“I believe we are inside the 10-meter line and moving towards the goal line to reach an agreement that would achieve a ceasefire, bring the hostages home and put us on a better track to trying to build lasting peace and stability,” Blinken said. said, using a football analogy.
The war in Gaza has led investors to price in a risk premium when trading oil as tensions threaten global supplies.
If a ceasefire is reached, the Iran-backed Houthi rebels could ease their attacks on commercial ships in the Red Sea, as the group declared the attacks in support of Hamas.
“Geopolitics is starting to loosen a little bit, so that should work in our favor following the news of this ceasefire,” said Tim Snyder, chief economist at Matador Economics.
The United Nations’ highest court has ruled that Israel’s occupation of the Palestinian territories and settlements there is illegal and must be withdrawn as soon as possible, further raising hopes for an end to the conflict.
Oil prices rose after stronger-than-expected U.S. labor and manufacturing data this week, putting pressure on oil prices, said Phil Flynn, an analyst at Price Futures Group.
A stronger U.S. currency dampens demand for dollar-denominated oil from buyers holding other currencies.
Chinese officials acknowledged that the expansive list of economic goals, which was re-emphasized at the end of a Communist Party meeting this week, contained “many complex contradictions,” pointing to a bumpy road ahead for policy implementation.
China’s economy grew slower than expected by 4.7% in the second quarter, official data showed, raising concerns about oil demand.
Energy services company Baker Hughes provided some support for prices, saying the number of oil rigs fell by one this week to 477, the lowest since December 2021.
A global technology disruption disrupted operations across multiple sectors, with airlines suspending flights, some broadcasters going offline and sectors from banking to healthcare hit by systemic issues.
Meanwhile, two large oil tankers were on fire after a collision near Singapore.
Singapore is Asia’s largest oil trading center and the largest bunkering port in the world. The surrounding waters are crucial trade waterways between Asia, Europe and the Middle East and are among the busiest shipping lanes in the world.
