Oil Slides Below $80 amidst Uncertainties in U.S Policies
Oil prices slid on Tuesday as investors took profits after reaching three-month highs on new U.S. sanctions on Russia’s energy sector, while reports of a potential Middle East ceasefire also weighed on prices.
Uncertainty over U.S. government policy under the Donald Trump administration is affecting commodity prices. Brent crude fell by 0.4%, trading at $79.79 per barrel.
The US benchmark West Texas Intermediate (WTI) declined 0.3% to $77.02 per barrel, down from its prior session close of $77.26.
Both benchmarks surged after the US administration sanctioned Russian oil producers Gazprom Neft and Surgutneftegas, over 180 vessels, many oil traders, and oil service providers on January 10.
The Treasury also sanctioned the oil producers’ subsidiaries, some 80 organisations, and individuals producing and exporting LNG.
Oil markets are mixed due to uncertainty about the upcoming Trump administration and concerns that inflation may rise in the US. Today, market players await US Producer Price Index (PPI) data.
Uncertainty about the new US administration’s policies is influencing expectations for the US Federal Reserve’s (Fed) interest rate cuts.
The Fed is expected to make its first interest rate cut of the year in the second half. Meanwhile, news reports suggest that the ongoing conflict between Israel and Palestine is close to a ceasefire.
According to Palestinian sources, a ceasefire and prisoner exchange agreement for the Gaza Strip is ‘nearly ready’ and could be signed this week. Reports by Israeli state broadcaster KAN suggested that Israel’s cabinet is likely to meet today to approve a ceasefire and prisoner exchange agreement for Gaza.
US President Joe Biden also spoke on the possibility of a ceasefire agreement in Gaza, saying, ‘We are very close to finally seeing the ceasefire proposal made months ago come to fruition.’
#Oil Prices Fall below $80 amidst Uncertainties in Commodity Market FBN Holdings Records Huge Off-Market Shares Transactions
