Oil Prices Hold at One-Month Lows After Recent Declines

Forex - Oil prices held at their lowest levels in a month following declines in the previous two sessions. Brent crude oil futures rose by 51 cents, or 0.72%, to $71.63 per barrel as of 10:18 AM Istanbul time. U.S. West Texas Intermediate crude futures traded at $67.83 per barrel, up 58 cents or 0.58%.

Prices fell for the second consecutive time on Tuesday after Axios reported that Israeli Prime Minister Benjamin Netanyahu will soon hold a meeting with some ministers, military, and intelligence chiefs to find a diplomatic solution to the war in Lebanon. According to Axios, Israeli and U.S. officials stated that an agreement to end the hostilities between Israel and Hezbollah could be reached within a few weeks.

IG market strategist Yeap Jun Rong noted, "The significant drop in oil prices since the beginning of the week may necessitate a rebalancing attempt in today’s session; however, given the lack of bullish catalysts to support a longer-term upward movement, overall gains remain limited. While there is a ceasefire agreement on the table in the Middle East, which reduces the broader escalation risk affecting oil production, there is still the prospect of OPEC+ easing production cuts on the horizon."