Oil prices down ahead of US elections, ongoing cease-fire negotiations in Mideast

By Zeynep Beyza Kilic

Oil prices declined on Tuesday amid uncertainty in the market ahead of the US presidential election and news reports of continued efforts to reach a cease-fire in Gaza.

The international oil benchmark of Brent crude declined 0.2% to $75.04 per barrel at 10.52 am local time (0752GMT), up from the previous session's close of $75.19.

The US benchmark West Texas Intermediate also fell by 0.2% to $71.25 per barrel, compared to $71.42 at the prior session's close.

Millions of Americans will head to the ballot box today to vote not only for the next US president, but also for Congress, state governors, and local government officials.

Analysts state that investors are avoiding taking risky positions in the runup to the US presidential election. Experts are also focused on the interest rate decision by the US Federal Reserve (Fed) which will be announced on Thursday, as the data could give clues about economic growth in the country.

Market players believe economic activity will be shaped according to the election results in the US, the world's largest oil consuming country, which will also affect the country's oil demand.

The decline in prices is partly due to the possibility of a ceasefire in Gaza as negotiations to reach peace in the region continues.

Palestinian President Mahmoud Abbas, in his speech on Monday at the World Urban Forum in Cairo, the capital of Egypt, said that it is time to implement the decision of the United Nations Security Council on the implementation of a cease-fire in the Gaza Strip, which was adopted by the UNSC on June 10.

Palestinian President Abbas also met with his Egyptian counterpart Abdel Fattah el-Sisi in Cairo. The Egyptian President said that intense efforts are ongoing to achieve a cease-fire in the Gaza Strip.

Though news reports that Israel rejected all cease-fire proposals limit the decline in prices.

Despite a daily decrease in oil prices on Tuesday, prices have been on an upward trend since October 28.

The price increase is due to the OPEC+ group's announcement that they will delay an increase in oil production, reports that Iran is preparing to retaliate for the October 26 Israeli attack and the ongoing tension in the Middle East.