Crude Prices Steady as Blinken Pushes Middle East Cease-Fire; Heating Oil, Distillates Dragged Down by Inventory Build

Crude oil futures remained stable on Monday as U.S. Secretary of State Antony Blinken initiated diplomatic efforts in the Middle East with Arab leaders in Saudi Arabia, aiming to secure a cease-fire between Israel and Hamas in Gaza before an Israeli assault on Rafah ensues. The Israeli government is currently waiting for Hamas’s response after proposing the release of 33 hostages in exchange for Palestinian prisoners. A delegation from Hamas will reportedly visit Cairo to discuss this proposal today. According to John Evans, analyst at oil broker PVM, as there are no significant new developments, crude prices have decreased due to a potential easement in the Gaza conflict environment. Moreover, heating oil and distillates weigh down on crude’s price with rising inventories of refined products combined with reduced demand, further impacted by declining profits for Exxon and Chevron owing partly to plummeting natural gas prices amidst a supply surplus.