(Bloomberg) — Oil extended a decline on the prospect a cease-fire in the Middle East will ease tensions and as signs of elevated inflation weigh on the outlook for US demand ahead of a Federal Reserve meeting.
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West Texas Intermediate traded above $81 a barrel after falling 0.8% on Tuesday, with global benchmark Brent closing below $88.
Israel will consider joining cease-fire talks with Hamas only when the militant group responds to the latest internationally mediated proposal for a temporary truce and hostage release, state-run Kan News reported.
Crude is starting May on the back foot after a rocky April that saw it surge to the highest since October following Iran’s unprecedented attack on Israel. While OPEC+ supply curbs are also bolstering prices, uncertainty over US monetary policy and softness in fuel markets including diesel are adding to headwinds.
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