08:55 AM EDT, 04/29/2024 (MT Newswires) -- Oil prices moved lower early on Monday despite tight supply as investors turn cautious ahead of this week's Federal Reserve policy meeting that is expected to end with no change to interest rates. Geopolitical risks are also easing.

West Texas Intermediate crude oil for June delivery was last seen down US$0.75 to US$83.10 per barrel, while June Brent crude, the global benchmark, was down US$0.89 to US$88.61.

The Federal Open Market Committee will begin its two-day meeting on Tuesday and is widely expected to leave rates unchanged. The CME Fedwatch Tool sees a 97.1% probability the central bank will keep rates unchanged, while the spotlight will be on when and if rates cuts will begin as inflation remains above the 2% target.

"Focus now turns to the Fed announcement due Wednesday where the central bank will likely keep its options open after the disinflation trend has become bumpy," Saxo Bank noted.

Geopolitical concerns are also easing, as reports said Hamas will attend cease-fire talks in Cairo, while US Secretary of State Antony Blinken will travel to the region as he looks to convince Israel and Hamas to reach a truce agreement.

"The details of the horse-trading do not sound particularly new but over the weekend President Biden had a conversation with Israel's premier Netanyahu, and hope springs eternal in market," PVM Oil Associates wrote.