Crude oil prices rose again in the morning session on April 9 after negotiations between Israel and Hamas did not meet expectations.
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| South Belridge oil well in Kern County, California, USA. (Source: CNBC) |
Brent crude futures rose 28 cents to $90.66 a barrel. U.S. West Texas Intermediate (WTI) crude rose 21 cents to $86.64 a barrel on the morning of April 9.
On April 8, a new round of ceasefire talks between Israel and Hamas in Cairo ended a multi-session rally, causing Brent crude to fall for the first time in five trading sessions (90.21 USD/barrel, down 0.72%) and WTI crude to fall for the first time in seven sessions (86.02 USD/barrel, down 0.76%).
However, Israeli Prime Minister Benjamin Netanyahu said that Israel had set a date for its attack on the city of Rafah in Gaza, which “put an end to any hopes of easing geopolitical tensions in the region,” according to IG market analyst Tony Sycamore.
Hamas said on the morning of April 9 that the Israeli proposal it received from Qatari and Egyptian mediators did not meet any of the Palestinian demands. However, Hamas affirmed that it would study the proposal before responding to the mediators.
The market continues to weigh the risk of disruption to oil supplies. Analysts at ANZ said Iran’s response to what is believed to be an Israeli attack on its consulate in Syria “could drag the oil market into the conflict, after it has largely been unaffected since Hamas’s attack on Israel.”
Iran has vowed to retaliate after an airstrike killed two of its generals and five military advisers in Damascus, although Israel has not claimed responsibility for the attack, the Tehran Times reported on April 5.
Meanwhile, analysts at ANZ said other, broader factors were supporting oil prices. Data released on April 8 showed India’s fuel demand hitting a record high in fiscal 2024 due to higher gasoline and jet fuel consumption. Improved Chinese manufacturing activity is expected to boost fuel demand.
This week, markets will be watching inflation data from the US and China for further signals on the economic direction of the world's two top oil consumers.
In the Americas, Mexico's state oil company Pemex said it would cut crude exports by 330,000 barrels per day to make more available to domestic refineries, cutting a third of the supply available to buyers in the United States, Europe and Asia.
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