Oil Prices Stabilize Amidst Mideast Ceasefire Talks

26 Nov 2024 , 11:11 AM

Early Tuesday trading saw a little increase in oil prices after they had dropped the day before as investors assessed the risk premium associated with a possible ceasefire between Israel and Hezbollah.

U.S. West Texas Intermediate crude futures were up 26 cents, or 0.38%, at $69.2 a barrel, while Brent crude futures were up 29 cents, or 0.4%, at $73.2 a barrel.

Following news that Israel and Lebanon had reached an agreement to terminate the Israel-Hezbollah conflict, which led to a selloff in crude oil, both benchmarks fell $2 a barrel on Monday.

Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters that OPEC+ may decide to keep its existing oil output limits in place starting on January 1 at its next meeting on Sunday, as the producer group had already delayed hikes due to concerns about demand.

Trump announced on Monday that he would issue an executive order levying a 25% tariff on all goods entering the United States from Canada and Mexico. It was unclear if crude oil would be included in this.

The United States receives the great majority of Canada’s 4 million barrels per day of oil exports. Trump is unlikely to impose tariffs on Canadian oil, according to analysts, because it is difficult to replace because it is different from grades produced in the United States.

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