Oil drops over USD2 a barrel on potential Middle East peace agreement
Date
11/26/2024 1:40:10 AM
(MENAFN) Oil prices declined over USD2 a barrel on Monday following several reports that Israel and Lebanon had approved to the policies of an agreement to finish the Israel-Hezbollah war, quoting unknown high-ranking US officials.
Brent crude futures stood at USD73.01 a barrel, a decrease of USD2.16, or 2.87 percent. US West Texas Intermediate crude futures ended at USD68.94 a barrel, a decline of USD2.30 or 3.23 percent.
Israel stated on Monday it is shifting toward a ceasefire in the conflict with Hezbollah but there are still challenges to solve, while Lebanese leaders voiced guarded optimism but stated Israeli Premier Benjamin Netanyahu was not to be trusted.
"It seems the news of a ceasefire between Israel and Lebanon is behind the price drop, though no supply has been disrupted due to the conflict between the two countries and the risk premium in oil has been low already before the latest price decline," stated Giovanni Staunovo of UBS.
Oil markets are being pushed up and down on increasing or decreasing supply interruption worries, Phil Flynn, high-ranking expert at Price Futures Group, stated in a Monday note.
"A report that Israel’s Prime Minister Netanyahu approves Lebanon ceasefire deal in principle could be a bearish catalyst, yet we must see more details as they become available. Last week the world was stunned as Russia launched supersonic missiles" at Ukraine, Flynn noted in his energy statement.
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