(Bloomberg) — Oil extended its decline on prospects of a Middle East ceasefire that would ease tensions and as signs of high inflation weigh on the outlook for U.S. demand ahead of a Federal Reserve meeting.
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West Texas Intermediate was trading above $81 a barrel after falling 0.8% on Tuesday, with global benchmark Brent crude closing below $88.
Israel will only consider joining ceasefire talks with Hamas when the militant group responds to the latest internationally-brokered proposal for a temporary truce and the release of hostages, the newspaper reported official Kan News.
Crude is starting the month of May down after a turbulent month of April which saw it reach its highest level since October following Iran’s unprecedented attack on Israel. Although OPEC+ supply restrictions also support prices, uncertainty over U.S. monetary policy and weakness in fuel markets, particularly diesel, add to headwinds.
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