NEW YORK/SINGAPORE- Oil prices held at more than one-month lows, after sliding in the previous two sessions, as markets weighed a potential ceasefire between Israel and Hezbollah and rising OPEC+ crude supplies against a possible drop in US fuel stocks.
Brent crude futures gained 38 cents, or 0.5 percent, to $71.50 a barrel. US West Texas Intermediate crude futures rose 43 cents, or 0.6 percent, to $67.64 per barrel.
Prices fell for a second straight session on Tuesday when an Axios reporter said on X that Israeli Prime Minister Benjamin Netanyahu would hold an imminent meeting with several ministers, the heads of the military and intelligence community about talks on a diplomatic solution to the war in Lebanon.
A deal that would end the fighting between Israel and Hezbollah could be achieved within a few weeks, Israeli and US officials said, according to Axios.
“A hefty plunge in oil prices since the start of the week may call for an attempt to stabilize in today’s session, but overall gains remain limited, given the lack of bullish catalysts to drive a more sustained up-move,” said IG market strategist Yeap Jun Rong in an email.
“A ceasefire deal in the Middle East is on the table, which reduces the risks of a wider escalation impacting oil production, while we still have OPEC+ unwinding of production cuts on the horizon,” he added.
OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies such as Russia, is scheduled to raise output by 180,000 barrels per day in December. The group has cut output by a total of 5.86 million bpd, equivalent to about 5.7 percent of global oil demand.
