Oil prices drop over Middle East ceasefire hopes, China’s economic slowdown
Date
11/26/2024 7:29:55 AM
(MENAFN) Oil prices saw a decline on Monday, driven by expectations of positive outcomes from cease-fire talks in the Middle East and concerns over an economic slowdown in China, the world’s largest oil importer.
Brent crude, the international oil benchmark, dropped by 0.85 percent, settling at USD74 per barrel by 10:57 a.m. local time (0757 GMT), down from USD74.64 in the previous session. Similarly, the US benchmark West Texas Intermediate (WTI) fell by 0.99 percent to USD70.40 per barrel, down from USD71.11 at the prior session’s close.
The drop in prices coincided with reports from the Israeli Broadcasting Authority (KAN) that Israeli Prime Minister Benjamin Netanyahu had agreed to a US-backed cease-fire with Lebanon. This cease-fire is expected to be announced within two days, potentially easing geopolitical tensions and influencing oil price dynamics.
Further weighing on oil prices is the economic slowdown in China, which continues to exert downward pressure on demand. In addition, market participants are keeping a close eye on the strengthening US dollar and the possibility of high tariffs during US President-elect Donald Trump’s second term, both of which could impact oil prices.
Investors are also awaiting key macroeconomic data from the US this week, including the minutes from the Federal Reserve's November meeting, expected to offer insights into future monetary policy.
MENAFN26112024000045015839ID1108927356
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.