Ceasefire negotiations cause oil prices to fall by over $1

The ceasefire talks in the Middle East have had a significant impact on the oil market, with US crude oil prices dropping more than $1 on Monday. The talks in Cairo, along with anticipation of the US central bank’s monetary policy review on May 1, led to a decline in oil prices. Investors are considering the possibility of the Fed raising interest rates by a quarter percentage point this year and next, as inflation and the labor market show resilience.

The June West Texas Intermediate light, sweet crude future closed at $82.63 per barrel, down $1.22. This drop in oil prices also had an effect on other commodity markets. Wheat futures were mixed, with prices declining in Chicago and Kansas City due to rainy forecasts in dry global export leader Russia. However, Minneapolis saw an increase in wheat prices.

Soy complex futures were also mixed, with soybeans and soymeal prices rising as Argentinian oilseed workers went on strike. Corn futures, on the other hand, eased due to the bearish sentiment generated by falling crude oil prices and winter wheat futures prices.

In the equity markets, Tesla shares jumped 15% after receiving approval from China to initiate a drive-assistance service. This helped boost the US equity markets, with the Dow Jones Industrial Average, the Standard & Poor’s 500, and the Nasdaq Composite all closing higher on Monday.

Overall, the ceasefire talks in the Middle East have had a ripple effect on various markets, with oil prices taking a hit while other commodities and equities experienced mixed reactions.