(New York) Oil prices fell on Monday, appeased by diplomatic efforts and the arrival of humanitarian aid in Gaza, although fears of a widening conflict between Israel and Hamas have not been ruled out.
A barrel of North Sea Brent for December delivery fell 2.52% to $89.93.
Its American equivalent, the barrel of West Texas Intermediate (WTI) for delivery the same month, which is the first day of use as a reference contract, fell 2.94% to 85.49 dollars.
“Recent diplomatic developments have helped ease tensions, bringing some hope of de-escalation in the war,” says Ricardo Evangelista, analyst at ActivTrades.
In addition, for analysts at JPM Commodities Research, “although uncertainties are very high, the war in Israel is unlikely to disrupt oil supplies.”
US President Joe Biden and the leaders of the main Western powers, with whom he spoke, reiterated their support for Israel on Sunday, while calling for respect for international humanitarian law, according to a White House report.
Fears of neighboring countries’ involvement in the war were in fact at the origin of “the recent rise in crude oil prices”, with investors fearing “that a prolonged war, which could spread to the Middle East, does not lead to a reduction in supply on the global oil market,” says Evangelista.
One of the main risks for the energy market would be the direct involvement of Iran, a supporter of Hamas and sworn enemy of Israel.
The European Union, for its part, plans to call for a “humanitarian pause” in Gaza.
The head of European diplomacy, Josep Borrell, estimated Monday that the leaders of the Twenty-Seven could support a call for a “humanitarian pause” to encourage the arrival of aid in the Gaza Strip, besieged by the Israeli army.
Prices were also on a downward trend after the announcement of a new megamerger in the energy sector with the oil giant Chevron which took over another oil and gas producer, Hess.
The operation, worth $53 billion, shows that the context is conducive to acquisitions since it follows the purchase of Pioneer by ExxonMobil two weeks ago, for $60 billion.