2024-02-12 02:49:10
Oil prices fell following rising last week following the Iranian Foreign Minister indicated that a diplomatic solution was imminent for the conflict between Israel and Hamas. Trading remained calm with many Asian markets closed for the Lunar New Year holiday.
Brent crude fell as much as 0.8% to below $82 a barrel, following rising 6.3% last week, while West Texas Intermediate crude traded near $76.
Iranian Foreign Minister Hossein Amir Abdollahian held talks in Beirut and discussed the possibility of releasing Israeli hostages, including with senior Hamas officials. He said that “developments in Gaza are moving towards a diplomatic solution,” without providing any details regarding the timing.
Meanwhile, Israeli Prime Minister Benjamin Netanyahu insisted on Sunday on directing an Israeli military operation in the southern city of Rafah while keeping civilians away from the area.
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Oil has traded within a range of around $10 during most of this year’s sessions, as tensions in the Middle East limit its impact.
Partly abundant global supply and fragile demand expectations – especially in China, the second-largest consumer.
Production from the Permian Basin in West Texas and New Mexico — which helped the United States export an unprecedented volume last year — is expected to reach another record this year. Production is said to rise approximately 5% to 6.4 million barrels per day by the end of 2024, major pipeline operator Plains All American Pipeline LP said in its fourth-quarter results report.
Meanwhile, there are additional downside risks to China’s demand outlook, Goldman Sachs Group analysts said in a note, citing rising electric vehicle sales and conversations with domestic consumers.
This week, traders are looking to monthly reports from OPEC and the International Energy Agency for further indications of supply and demand.
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