As relief convoys approach the beleaguered Gaza Strip, oil prices decline

23 Oct 2023 , 10:16 AM

In the midst of diplomatic efforts to prevent a conflict between Israel and the Palestinian Islamist party Hamas from spreading to the larger oil-rich region, supply convoys began to arrive in the Gaza Strip over the weekend, which led to an ease in oil prices on Monday.

U.S. West Texas Intermediate crude futures dropped 61 cents to trade at $87.47 per barrel, while Brent crude futures dropped 60 cents to $91.56 a barrel.

Contracts increased more than 1% last week for the second straight week due to concerns about possible supply disruptions in the event that the Israel-Hamas conflict spreads throughout the Middle East, the world’s largest oil-supplying region.

Following a settlement reached by the Venezuelan government with the opposition, the United States lifted sanctions on OPEC member Venezuela in an effort to relieve supply pressure that had been acutely tight due to output cuts by OPEC and its members, including Russia.

Aid convoys from Egypt began arriving in the Gaza Strip over the weekend, while foreign ministers and Arab leaders convened in Cairo for a summit that failed to produce a consensus message.

After chatting with Pope Francis and Israeli Prime Minister Benjamin Netanyahu, U.S. President Joe Biden, who travelled to Israel last week, spoke by phone with the leaders of Canada, France, Britain, Germany, and Italy on Sunday.

This week, the leaders of France and the Netherlands will travel to Israel in an attempt to find a resolution to the crisis that began on October 7 following a Hamas strike. According to recent events, Israel has been attacking Gaza with planes and has also attacked Lebanon.

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