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-pkihtJTKic.jpg "Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019.")
Oil prices fell on Monday after increasing for four weeks, as the possibility of a ceasefire agreement in Gaza reduced tensions in the Middle East. Meanwhile, investors were evaluating the potential disruption to US energy supplies caused by Hurricane Beryl.
At 0843 GMT, Brent crude futures dropped by 49 cents, or 0.57%, to $86.05 a barrel, while US West Texas Intermediate (WTI) crude was at $82.53 a barrel, down 63 cents, or 0.76%, according to Reuters.
Discussions about a US ceasefire plan to end the nine-month-old war in Gaza are ongoing, mediated by Qatar and Egypt. Analyst Tony Sycamore from IG in Sydney mentioned that if concrete progress is made in the ceasefire talks, it could reduce geopolitical tensions in the market for the time being.
The closure of Texan ports in preparation for Hurricane Beryl could temporarily halt crude and liquefied natural gas exports, oil shipments to refineries, and motor fuel deliveries. There is also concern about the potential impact on refinery infrastructure when the storm makes landfall.
Last week, WTI saw a 2.1% increase after the Energy Information Administration reported a decrease in stockpiles for crude and refined products. Sycamore also noted the likelihood of another significant weekly draw in US oil inventories during peak driving season.
Investors were also watching for any impact from elections in the UK, France and Iran last week on geopolitics and energy policies.
