Oil prices drop as Middle East ceasefire talks intensify

FILE: Uno Fuel attendant Renz Fernandez refills a customer’s vehicle in Camarin, Caloocan City on Tuesday (Sept. 7, 2021). Oil companies announced gasoline, diesel, and kerosene price hikes beginning Tuesday. (PNA photo by Ben Briones)

By Anadolu, Philippine News Agency

ANKARA – Oil prices fell on Monday as growing efforts to secure a ceasefire in the Middle East, which holds a significant portion of the world’s oil reserves, eased supply concerns.

International benchmark Brent crude slipped 0.4 percent to USD76.64 per barrel at 10:32 a.m. local time (0732 GMT), down from the previous close of USD76.93.

US benchmark West Texas Intermediate (WTI) also saw a decrease of 0.6 percent, settling at USD73.12 per barrel after closing at USD73.55 the previous session.

Oil prices had surged to USD80.20 following an announcement on August 26 by Libya’s eastern-based government, led by Osama Hammad, that it would suspend oil production.

However, prices have since remained below USD80 over the past four sessions.

The recent decline in prices is attributed to the increased prospects of a ceasefire in the Middle East, which has alleviated market concerns about supply disruptions.

On Monday, a nationwide strike in Israel, led by the General Organization of Workers, Histadrut, heightened the urgency for Prime Minister Benjamin Netanyahu to secure an immediate ceasefire and negotiate a prisoner exchange with the Palestinian group Hamas.

The strike, which has been rapidly spreading following large-scale protests, is aimed at pushing the government to address demands for the release of hostages held in Gaza.

The massive protests, involving nearly 770,000 Israelis in cities like Tel Aviv, have intensified expectations that a ceasefire is imminent.

This sentiment has contributed to the downward movement in oil prices by easing concerns about potential supply shortages.