Oil prices flat with storm Beryl impact, Gaza peace talks in focus

Oil Prices Steady as Markets Monitor Tropical Storm Beryl and Gaza Ceasefire Talks

Oil prices stabilized in Asian trade on Tuesday, with markets closely watching the potential impact of Tropical Storm Beryl on U.S. oil production, as well as ongoing ceasefire talks between Israel and Hamas.

After experiencing significant losses on Monday due to profit-taking and increased speculation over a Gaza ceasefire, oil prices found some footing. Brent oil futures for September hovered around $85.72 per barrel, while West Texas Intermediate crude futures steadied at $81.49 per barrel by 20:40 ET (00:40 GMT).

Tropical Storm Beryl Impacts Texas Oil Infrastructure

Tropical Storm Beryl made landfall in Texas on Monday, causing widespread power outages and disruptions in the state’s oil industry. The storm had briefly strengthened to a Category 1 hurricane before weakening back to a tropical storm. As it continues up the coast, further weakening is expected.

Despite initial expectations that Beryl would have a limited impact on U.S. oil production, a number of oil producers, exporters, and refiners along the Gulf of Mexico have suspended operations, potentially causing short-term disruptions in U.S. oil supply. Key export terminals in Texas are expected to be affected, though the full extent of the impact remains unclear.

Gaza Ceasefire Talks Affect Oil Prices

Oil prices dropped sharply on Monday following media reports indicating progress in ceasefire negotiations between Israel and Hamas. Last week, Hamas made several major concessions in pursuit of a ceasefire, though Israel continued its military operations in Gaza, launching new strikes on Monday.

Hamas leaders warned that continued Israeli aggression could jeopardize the ceasefire talks. The U.S. is also exerting pressure on Israel to agree to a ceasefire. However, Israeli Prime Minister Benjamin Netanyahu has stated that any ceasefire must allow Israel to continue its military objectives.

Chinese Economic Data in Focus

This week, market attention is also on a series of economic indicators from China, the world’s largest oil importer. Upcoming Chinese trade and inflation data are expected to provide further insights into the outlook for Chinese demand.

Additionally, concerns over a potential trade war between China and the West have resurfaced after the European Union imposed steep tariffs on imports of Chinese electric vehicles.

Investing in 2024

With stock valuations soaring in 2024, many investors are hesitant to invest further in the market. For those uncertain about their next investment move, accessing proven portfolios can help identify high-potential opportunities.

In 2024, ProPicks’ AI identified several high-performing stocks: two surged over 150%, four increased by more than 30%, and three climbed over 25%. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, investors can explore a variety of wealth-building strategies.