Oil rates fall over strengthened Middle East ceasefire discussions

(MENAFN) Oil prices experienced a drop on Monday as growing efforts to secure a cease-fire in the Middle East, a region crucial to the global oil supply, helped to ease concerns about potential disruptions. Brent crude, the international benchmark, fell by 0.4 percent, reaching USD76.64 per barrel at 10:32 a.m. local time (0732 GMT), down from its previous close of USD76.93. Similarly, the US benchmark, West Texas Intermediate (WTI), decreased by 0.6 percent, settling at USD73.12 per barrel after closing at USD73.55 in the last session.

Earlier, oil prices had climbed as high as USD80.20 following an announcement on August 26 by Libya’s eastern-based government, led by Osama Hammad, stating that oil production would be suspended. However, in the subsequent sessions, prices have stayed below the USD80 mark, reflecting the market's response to shifting geopolitical developments.

The recent decline in oil prices is largely attributed to the growing likelihood of a cease-fire in the Middle East, which has mitigated fears of significant supply interruptions. This sentiment has been reinforced by the widespread protests in Israel, where nearly 770,000 Israelis, particularly in cities like Tel Aviv, have demanded immediate government action.

In Israel, a nationwide strike led by the General Organization of Workers, Histadrut, added to the urgency for Prime Minister Benjamin Netanyahu to negotiate a cease-fire and a prisoner exchange with Hamas. The strike and the escalating protests have increased expectations that a cease-fire may soon be reached, which has contributed to the easing of oil prices as concerns about supply shortages diminish.

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