Oil futures moved lower early Monday, reflecting market reactions to geopolitical and weather-related developments. Over the weekend, Hamas gave its initial approval to a U.S.-backed proposal for a phased ceasefire deal with Israel in Gaza, which brought a sense of cautious optimism to traders. This potential ceasefire raised hopes for a reduction in hostilities, impacting oil prices.

Traders were also closely monitoring the progress of Hurricane Beryl as it made landfall on the central Texas coastline as a Category 1 storm. Earlier in the month, Beryl had become the earliest Category 5 storm in Atlantic history, which heightened concerns about its potential impact. The storm's arrival prompted the closure of several major ports in Texas, including Corpus Christi, Houston, Galveston, Freeport, and Texas City. These closures were anticipated to delay the export of crude oil and the movement of motor fuels within the region, adding another layer of uncertainty to the market.

In terms of price movements, West Texas Intermediate (WTI) crude for August delivery fell by 95 cents, or 1.1%, to $82.21 a barrel on the New York Mercantile Exchange. Similarly, September Brent crude, the global benchmark, dropped by 80 cents, or 0.9%, to $85.74 a barrel on ICE Futures Europe.

Despite the declines on Friday, both Brent and WTI logged weekly gains. However, the start of the new week was marked by a downbeat note as hopes for further progress in ceasefire talks overshadowed the market. The ceasefire proposal, backed by the U.S., aimed to gradually reduce hostilities and establish a more stable environment in Gaza. The initial approval by Hamas was seen as a positive step towards achieving this goal.

The impact of Hurricane Beryl also played a significant role in the market's movement. As the storm made landfall, the affected ports' closures were expected to disrupt the logistics and operations related to crude oil exports and motor fuel transportation. These disruptions added to the bearish sentiment in the market, contributing to the decline in oil futures.

In summary, the oil market's early Monday performance was influenced by two main factors: the approval of a phased ceasefire proposal between Hamas and Israel, and the landfall of Hurricane Beryl on the Texas coast. These developments led to a decline in oil futures, with WTI and Brent crude prices both experiencing losses. The market's focus remained on the potential outcomes of the ceasefire talks and the ongoing impact of Hurricane Beryl on oil logistics and exports.

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