Nov 27, 2024 (MENAFN via COMTEX) --
(MENAFN) Oil prices remained stable in early trading on Wednesday as markets assessed the potential impact of a ceasefire agreement between Israel and Hezbollah and looked ahead to an OPEC+ meeting on Sunday. By 0114 GMT, Brent crude futures had dropped by 2 cents, trading at USD72.79 per barrel, while U.S. West Texas Intermediate (WTI) crude futures were down by 4 cents, or 0.1 percent, at USD68.73.
The stability in oil prices followed a decline on Tuesday after Israel agreed to a ceasefire with Hezbollah. The ceasefire, brokered by the United States and France, went into effect at 4 a.m. local time (0200 GMT) on Wednesday. This agreement aims to end a conflict that has resulted in thousands of casualties since the Gaza war last year ignited tensions between Israel and Hezbollah.
Israeli Prime Minister Benjamin Netanyahu expressed his readiness to implement the ceasefire with Lebanon but warned that any violations by Hezbollah would be met with a strong response. The ceasefire has left market participants speculating on whether it will be fully adhered to. "Market participants are trying to speculate whether the ceasefire will be observed," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
In the background, OPEC+ countries are discussing a potential delay in an oil production increase that was set to begin in January. According to two OPEC+ sources, this decision will be a key topic at the upcoming meeting on Sunday, where OPEC+ members will decide on their production policy for the first quarter of 2025.
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