Oil slips from six-month high as Qatari mediators visit Tehran; dollar and Treasury yields ease
Brent crude fell more than 1% to around $115 a barrel on Monday after Reuters reported that Qatari mediators were in Tehran to help de-escalate regional tensions. Lower oil and Treasury yields weighed on the dollar ahead of a week of central bank decisions.
Oil prices eased on Monday, with Brent crude down more than 1% at around $115 a barrel after touching a six-month high last week, Reuters reports. The move followed a Reuters report that Qatari mediators were in Tehran on Sunday as part of an effort, coordinated with the United States, to de-escalate tensions in the region.
Bonds and currencies
US Treasuries held most of their recent safe-haven gains: the 10-year yield was about 4.97% and the 30-year about 5.30%, near one-month lows. That weighed on the dollar, with the dollar index slightly weaker at 101.64. The euro rose to about $1.122, helped by relief that France avoided a Moody’s downgrade; sterling was at about $1.3385 and the yen near 156.9 per dollar. Spot gold was slightly lower at around $3,986 an ounce and bitcoin fell 0.6% to about $79,926.
The week ahead
The Fed, the Bank of Canada and the Reserve Bank of New Zealand meet on Wednesday, the ECB on Thursday and the Bank of Japan on Friday. Markets expect the Fed, ECB and BOJ to hold, while pricing possible hikes in Canada and New Zealand as high oil keeps inflation worries alive. US stock futures edged higher early on Monday.
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