Brent Crude Falls Over 3% Weekly Amid Geopolitical Tensions
Brent Crude Falls Over 3% Weekly Amid Geopolitical Tensions . (MENAFN - The Rio Times) Oil prices faced a notable decline on November 29, 2024, driven by easing supply concerns following a ceasefire between Israel and Hezbollah.

Brent crude settled at $72.94 ...
América - MenaFN
(MENAFN- The Rio Times) Oil prices faced a notable decline on November 29, 2024, driven by easing concerns following a ceasefire between Israel and Hezbollah.



Brent settled at $72.94 per barrel, down 0.46%, while U.S. West Texas Intermediate (WTI) dropped to $68 per barrel, reflecting a 1.05% decrease.



Over the week, fell by 3.1% and WTI by 4.8%, indicating a significant shift in sentiment. The ceasefire, which began on November 27, aimed to reduce hostilities that had escalated along the Israel-Lebanon border.



Despite accusations of violations from both sides, the agreement initially alleviated fears of supply disruptions that had previously inflated oil prices due to geopolitical tensions.



However, reports of Israeli tanks entering a Lebanese village raised new concerns about stability in the region. The ceasefire provided temporary relief.







However, analysts noted that oil supplies from the Middle East remained largely unaffected. This was the case despite the ongoing conflicts involving Israel, Hezbollah, and Hamas.



This stability contributed to a more optimistic outlook for oil supply in 2025. The International Energy Agency has forecasted an excess supply of over 1 million barrels per day.

Impact on Oil Market and Geopolitical Concerns

The Organization of the Petroleum Exporting Countries and its allies (OPEC+ ) postponed their crucial meeting on oil production strategy from December 1 to December 5.



This delay left investors awaiting decisions on potential extensions of production cuts that have been in place to stabilize prices amid fluctuating demand.



Market activity was subdued due to the Thanksgiving holiday in the U.S., which resulted in lower trading volumes. Analysts from BMI revised their Brent price forecast for 2025 down to $76 per barrel.



This adjustment was made from a previous estimate of $78, citing ongoing bearish sentiment and anticipated market dynamics. Geopolitical events continued to influence market perceptions.



Russian military actions against Ukrainian energy infrastructure raised concerns about retaliatory impacts on oil supplies. Additionally, Iran's announcement of plans to install over 6,000 new uranium-enriching centrifuges added another layer of uncertainty.



This development further impacted global energy markets. As OPEC+ prepares for its delayed meeting, analysts expect discussions will focus on whether to extend existing production cuts into the new year.



Despite current low prices, there is speculation that compliance among OPEC+ members is improving, which could lead to a more coordinated approach in managing output levels.



In summary, while recent geopolitical developments provided temporary relief from supply concerns, the broader outlook for oil prices remains complex.



The interplay between regional conflicts and OPEC+ strategies will be crucial in shaping market dynamics as we move into 2025. Investors will need to stay vigilant as these factors continue to evolve and influence global oil markets.

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https://menafn.com/1108940435/Brent-Crude-Falls-Over-3-Weekly-Amid-Geopolitical-Tensions
2024-11-29
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(MENAFN - The Rio Times) Oil prices faced a notable decline on November 29, 2024, driven by easing supply concerns following a ceasefire between Israel and Hezbollah.

Brent crude settled at $72.94 ...
Brent Crude Falls Over 3% Weekly Amid Geopolitical Tensions