Crude oil prices for front-month deliveries pulled back on Monday as geopolitical woes fueled up concerns about the commodity’s demand. The downturn may be attributed to the alleged progress made in ceasefire negotiations between Israel and Hamas and the anticipation that the Federal Reserve will initiate a reduction in interest rates during its September meeting. Investors are also evaluating the implications of US President Joe Biden’s decision to quit his reelection campaign and extend his support to Vice President Kamala Harris.
For September contracts, West Texas Intermediate (WTI) fell 1.12% to sell at $78.78 a barrel at 10:07 am ET. Brent for September settlements dipped 1% to $81.83 per barrel.