Oil risks ease as Lebanon ceasefire deal reached

Oil prices ended the trading session on November 26 lower, extending the decline of the previous volatile trading session, after Israel agreed to a ceasefire with Hezbollah in Lebanon, reducing oil's risk level.

At the end of the trading session on November 26, oil prices fell after Israel agreed to a ceasefire with Hezbollah in Lebanon, reducing oil's risk level. (Source: Reuters)

Brent crude fell 20 cents, or 0.27 percent, to $72.81 a barrel. WTI crude fell 17 cents, or 0.25 percent, to $68.77 a barrel.

According to Reuters, Israel's security cabinet has agreed on a ceasefire agreement. The agreement is expected to take effect today, November 27.

Israeli Prime Minister Benjamin Netanyahu said he was ready to implement the ceasefire agreement and would “respond strongly to any violations” by Hezbollah.

Oil prices slid more than $2 on November 25, following reports that Israel and Hezbollah had agreed on ceasefire terms in the conflict.

A ceasefire could put pressure on crude prices, as the US administration is likely to ease sanctions on Iranian oil, said StoneX analyst Alex Hodes.

Notably, in the trading session on November 26, both benchmark oil products at one point "climbed" more than 1 USD.

Oil prices rose and fell on news of a resumption of OPEC talks, said Phil Flynn, senior analyst at Price Futures Group.

OPEC and its allies (OPEC+) are still discussing further delaying the planned increase in oil production, expected to start in January 2025, ahead of a meeting on December 1 to decide policy for the first months of next year.

The fire has been rekindled by OPEC+ continuing to delay production increases and US President-elect Donald Trump’s plan to impose 25% import tariffs on Canada and Mexico, but that hasn’t been enough to support WTI prices above $70 a barrel, said analyst John Kilduff of Again Capital.

With Donald Trump's plan to increase import tariffs, crude oil will not be exempt.

According to the American Petroleum Institute (API), maintaining the flow of energy products across the borders of the United States, Mexico and Canada is important. The majority of Canada's 4 million barrels of crude oil exported per day goes to the United States.

Regarding US inventory data, API said that last week, US crude oil inventories fell by 5.935 million barrels, while gasoline inventories increased by 1.814 million barrels and distillate inventories increased by 2.543 million barrels.

Domestic retail prices of gasoline on November 27 are as follows:

E5 RON 92 gasoline is not more than 19,343 VND/liter.

RON 95-III gasoline is not more than VND 20,528/liter.

Diesel oil not more than 18,509 VND/liter.

Kerosene not more than 18,921 VND/liter.

Fuel oil not exceeding 16,014 VND/kg.

The above domestic retail prices of gasoline and oil were adjusted by the Ministry of Finance and the Ministry of Industry and Trade in the price management session on the afternoon of November 21. Because the world price of gasoline and oil “plummeted” last week but recovered slightly this week, the domestic price of gasoline and oil also continued to decrease with a slight decrease.

E5 RON 92 gasoline price decreased the most, 109 VND/liter. RON 95-III gasoline decreased by 79 VND/liter, diesel oil decreased by 64 VND/liter, kerosene decreased by 67 VND/liter. Only mazut oil increased by 5 VND/kg.

During this operating period, the joint ministries did not set aside or use the Petroleum Price Stabilization Fund for E5 RON 92 gasoline, RON 95 gasoline, diesel oil, kerosene, and fuel oil.

Source: https://baoquocte.vn/gasoline-price-today-2711-risk-of-oil-falling-down-in-lebanon-295269.html