(Reuters) – Crude oil prices were little changed as peace talks between Israel and Hamas in Cairo ease fears of wider conflict in the Middle East and U.S. inflation data dampen prospects for an interest rate cut soon.
At around 12.20 pm, June Brent futures, which expire tomorrow, lost 58 cents, or 0.6%, to 88.92 dollars a barrel. The most active July contract fell 32 cents, or 0.4%, to $87.89 a barrel.
US West Texas Intermediate (WTI) crude futures lost 28 cents, or 0.3%, to 83.56 dollars a barrel.
A Hamas delegation will travel to Cairo today for talks aimed at securing a ceasefire, a Hamas official told Reuters on Sunday.
US inflation data on Friday put a damper on expectations of rate cuts in the near future, rising 2.7% in the 12 months to March, above the Fed’s target of 2%. Lower inflation would have increased the likelihood of cuts, which tend to stimulate economic growth and oil demand.
Further weighing on the outlook for oil demand, earnings growth at China’s industrial companies slowed in March, according to official data released on Saturday, a further sign of the fragility of domestic demand in the world’s second-largest economy.
(Translated by Laura Contemori, editing by Gianluca Semeraro)
