HOUSTON: Oil prices fell more $2 on Monday after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing unnamed senior US officials.

Brent crude futures were down $2.02, or 2.69 per cent, at $73.15 a barrel by 9:57 a.m. CST (1557 GMT), while US West Texas Intermediate crude futures were down $2.08, or 2.92pc, at $69.16 a barrel.

Israel said on Monday that it is moving toward a ceasefire in the war with Hezbollah but there are still issues to address, while Lebanese officials voiced guarded optimism but said Israeli Prime Minister Benjamin Netanyahu was not to be trusted.

“It seems the news of a ceasefire between Israel and Lebanon is behind the price drop, though no supply has been disrupted due to the conflict between the two countries and the risk premium in oil has been low already before the latest price decline,” said Giovanni Staunovo of UBS.

Oil markets are being pushed up and pulled down on rising or falling supply disruption fears, Phil Flynn, senior analyst at Price Futures Group, said in a Monday note.

“A report that Israels Prime Minister Netanyahu approves Lebanon ceasefire deal in principle could be a bearish catalyst, yet we must see more details as they become available. Last week the world was stunned as Russia launched supersonic missiles” at Ukraine, Flynn wrote in his Energy Report.

Published in Dawn, November 26th, 2024