"Geopolitical Diplomacy and OPEC Cues Drive Oil Prices Lower"

Oil prices started the week lower as Israel's pause in bombing southern Gaza reduced supply disruption risk, while a statement from the Iranian foreign minister hinted at a potential diplomatic solution. Additionally, Plains All American Pipeline projected record oil production from the Permian, and Goldman Sachs forecasted increased electric vehicle expansion in China, dampening oil demand. The Fed's indication of no immediate rate cuts also contributed to keeping oil prices range-bound, while Houthi attacks on ships in the Red Sea continued to impact oil traffic, rerouting it from the Middle East to Africa and potentially boosting demand.