Oil deepens losses as tensions abate in Middle East

Oil drilling rigs

Oil prices closed lower today, April 29, following reports on the possibility of tensions calming in the Middle East, and despite the decline of the dollar.

Brent crude for June delivery (which expire on April 30) fell 1.25%, or $1.10, to $88.40 per barrel, after recording weekly gains.

WTI crude futures for June delivery fell by 1.45%, or $1.22, to $82.63 per barrel.

The dollar index, which measures its value against a basket of six major currencies, fell by 0.30% to 105.64 points, at 10:23 pm Makkah time.

The US Secretary of State is holding talks in the Middle East with leaders and officials in the region, in order to push for a ceasefire in Gaza and prevent a possible Israeli attack on Rafah.

With reports indicating that the impasse in ceasefire negotiations has been broken, markets have increased optimism about the possibility of geopolitical pressures subsiding and the risk premium placed on prices easing.