3 hours agoThe truce between Lebanon and Israel falls oil prices
Periskopi(22 days ago)
(22 days ago)Oil prices fell Thursday, as a ceasefire agreement between Israel and Lebanon increased hopes of a broader deal ending the US-Israel war with Iran, which could lead to the reopening of the Hormuz Strait.
The future Brent oil prices dropped by 87 cents, or 0.19%, to $99 per barrel by 04:58. GMT, while West Texas Intermediate oil fell 78 cents, or 0.11%, to $95.24, cutting profits from the start of the week.
Both Brant and WTI oil rose by about 2% on Wednesday following renewed hostilities in the Middle East, including Iranian attacks on Kuwait and US military attacks near Hormuz Strait, Reuters reports, broadcast Periscope.
Israel and Lebanon said late Wednesday they had agreed to implement a ceasefire, raising hopes for an agreement between Washington and Tehran, which has conditioned any agreement in part with the outcome of fighting between Israel and Lebanon.
US President Donald Trump suggested Wednesday that there may be progress in negotiations with Iran this weekend.
Iranian Foreign Minister Abbas Aracchi said Wednesday that Tehran's contacts with Washington have not been interrupted, but no progress has been made in negotiations, adding that both sides were studying the texts that were exchanged.
In the US, the Republican-led House of Representatives adopted a resolution Wednesday to block Trump from continuing the war against Iran. To take effect, the resolution would need Senate approval and the majority of two-thirds in both rooms to bypass an almost safe Trump veto.
Meanwhile, US crude oil reserves fell by 8 million barrels to 433.7 million barrels in the week that ended on 29 May, the Energy Information Administration said Wednesday. It was a far greater decline than 4 million barrels of withdrawal analysts had waited in a Reuters survey.
The International Energy Agency warned on Tuesday that global oil inventorys could reach critical levels ahead of the maximum summer demand if the withdrawals of reserves continue at their current pace, despite Chinese gross oil imports falling 6 million barrels a day in May compared to March.
"Inventors have provided a pillow for the oil market. However, even if we see an imminent resumption of oil flows through the Strait of Hormuz, recovery will be slow and gradual", an ING note said.
"This suggests that inventoryrs will likely continue to narrow in the third quarter, leaving increasing risk of prices". /Periscope
