Oil falls on Blinken's Middle East visit

Oil has fallen as the United States tries to broker a peace deal between Israel and Hamas that would ease geopolitical tensions in the Middle East. Brent crude traded below $89 a barrel after gaining 2.5% last week, while U.S. crude fell to $83. U.S. Secretary of State Antony Blinken is set to step up efforts to broker a ceasefire in Gaza during a visit to the region. The White House said it had agreed to listen to Israeli concerns and hold off on occupying Rafah until it meets with the Americans. Crude has risen this year on OPEC+ supply cuts and rising tensions in the Middle East, which is the source of about a third of the world’s oil. Meanwhile, changing expectations for U.S. monetary policy are weighing on the demand outlook and investors will be watching Wednesday’s Federal Reserve meeting to gauge expectations for a rate cut this year. “Geopolitical risks have eased significantly,” said Warren Patterson, head of commodity strategy in Singapore at ING Groep NV. Russia launched attacks on Ukraine over the weekend targeting its natural gas infrastructure and other targets. Kiev responded with drones targeting an oil refinery in the Krasnodar region, while the Slavyansk plant partially suspended operations due to the fire, state news agency Tass reported.