The global oil market experienced a significant shift on Monday, November 25, 2024, as crude prices fell by approximately 3%.
This downturn was primarily attributed to reports of a potential ceasefire agreement between Israel and Hezbollah, the Lebanese militant group.Brent crude, the international benchmark, saw its January 2025 contracts close at $73.01 per barrel, marking a 2.87% decrease.
This price movement occurred on the Intercontinental Exchange in London.Despite the daily drop, Brent crude managed to accumulate a 5.7% gain over the past week.
In the United States, West Texas Intermediate (WTI) crude futures for January delivery settled at $68.94 per barrel on the New York Mercantile Exchange.This represented a more substantial decline of 3.23%.
However, WTI still recorded a weekly increase of 6.5%.
The oil markets reaction stemmed from news of potential de-escalation in the Middle East conflict.Oil Prices Dip as Middle East Tensions Ease.
(Photo Internet reproduction)CNN reported that Israeli Prime Minister Benjamin Netanyahu had tentatively approved a ceasefire agreement with Hezbollah in Lebanon.
This development emerged from a security consultation with Israeli officials on Sunday night.Oil Market UpdateWhile Middle East tensions eased, the ongoing conflict between Ukraine and Russia remained a secondary concern for oil traders.The previous week had seen both Brent and WTI contracts achieve their most significant weekly gains since late September, reaching levels not seen since November 7.Russias launch of a hypersonic missile against Ukraine triggered last weeks surge in prices.
This action was perceived as a warning to the United States and the United Kingdom.It followed Ukraines use of American and British weapons in attacks against Russia.
Market participants are now focusing on the upcoming meeting of the Organization of Petroleum Exporting Countries and its allies (OPEC+).The meeting is scheduled for Sunday, December 1.
Sources suggest that the group is likely to maintain its current oil production cuts, as reported by Reuters.Earlier this month, OPEC+ postponed planned production increases due to concerns about global oil demand.
The outcome of this meeting could have significant implications for future oil price movements and global energy markets.