(Reuters) – Oil prices edged lower in early trading on Tuesday after ceasefire talks between Israel and Hamas in Cairo eased market concerns about escalating conflict in the Middle East, but concerns about the outlook for U.S. interest rates weighed on markets. It became a burden.
At 0006 GMT, Brent crude oil futures were down 5 cents, or 0.06%, at $88.35 a barrel, and US West Texas Intermediate crude futures were down 12 cents, or 0.15%, at $82 a barrel. ．It was 51 dollars.
Front-month contracts for both benchmarks fell more than 1% on Monday.
Hamas negotiators departed Cairo late Monday for talks with Hamas leadership after consulting with Qatari and Egyptian mediators on how to respond to a gradual ceasefire proposed by Israel over the weekend.
Two Egyptian security officials said the delegation was expected to report within two days.
Hamas leaders are visiting Cairo, but also on Monday in the southern Gaza city of Rafah, where Israeli airstrikes killed dozens of Palestinians and foreign leaders have urged Israel not to invade. More than half died.
Continued attacks by Yemen's Houthis on maritime traffic south of the key Suez Canal trade route keep oil prices on the floor, prompting higher risk premiums if players expect oil supply disruptions. there is a possibility.
The Houthis are targeting two US destroyers in the Red Sea, the Cyclades and the MSC Orion in the Indian Ocean, Iranian-allied group military spokesman Yahya Saleh said in a televised address early Tuesday.
On the economic front, investors are keeping an eye on the US Federal Reserve's policy review on May 1st this week, but stubborn inflation is pushing up market expectations for interest rate cuts, which will push the US dollar higher. This could hinder oil demand.
Some investors are cautiously pricing in the possibility that the Fed will be more likely to raise interest rates by a quarter of a percentage point this year and next as inflation and the labor market continue to recover.
(Reporting by Georgina McCartney; Editing by Sonali Paul)
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