Oil prices drop after Israel’s cabinet agrees to a ceasefire deal with Lebanon
Oil prices dropped on Tuesday after Israel’s security cabinet agreed to a ceasefire with Lebanon, ending the conflict.
Oil Prices Update
Brent crude oil ended at $72.81 a barrel, down 0.3%, while US West Texas Intermediate (WTI) crude closed at $68.77 a barrel, down 0.2%.
Prices had gone up earlier in the day after news that Israel’s security cabinet approved a ceasefire with Lebanon.
On Tuesday, Israeli Prime Minister Benjamin Netanyahu announced on TV that he was ready to honor the ceasefire deal but warned of a strong response if Hezbollah violated it. He emphasized that Israel would keep full military control.
The ceasefire, arranged by the US and France, is set to start on Wednesday.
According to a Reuters report on Monday, ANZ analysts said the ceasefire could make it less likely for the incoming US government to place more sanctions on Iranian oil.
OPEC+ output
Iraq, Saudi Arabia, and Russia discussed the importance of keeping the energy market stable, balanced, and fair during a meeting on Tuesday, according to Iraq’s Prime Minister Mohamed Shia’ Al Sudani’s office.
The meeting included Iraq’s Prime Minister, Russian Deputy Prime Minister Alexander Novak, and Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman Al Saud. Russian Energy Minister Sergei Tsivilev and Deputy Energy Minister Pavel Sorokin also attended.
They talked about the global energy market, oil production, and the flow of oil to meet demand. The role of OPEC+ in achieving these goals was also discussed.
This meeting happened before OPEC+’s meeting on Sunday, where members will discuss the possibility of delaying plans to increase oil production. OPEC+ has already postponed plans to slowly raise production several times this year.
Azerbaijan’s Energy Minister Parviz Shahbazov said on Monday that OPEC+ may decide to keep its current oil output cuts in place during Sunday’s meeting, according to Reuters.
Comfortable oil market
Fatih Birol from the International Energy Agency (IEA) said at a conference in Norway on Tuesday that he expects there will be enough oil and gas supply. He believes the oil market will be stable and comfortable this year and next, unless there is a major geopolitical crisis.
Earlier in November, the IEA predicted that global oil supply will be higher than demand in 2025, even if OPEC+ continues to cut production. This is because oil production from the US and other countries will increase, while demand stays weak.
Published: 27th November 2024
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