WASHINGTON (dpa-AFX) - Oil prices fell sharply on Monday, weighed down by reports that Israel and Hezbollah are likely to reach a cease-fire agreement within the next few days.
Oil prices dropped despite a weaker dollar and lingering worries about escalating tensions between Ukraine and Russia.
West Texas Intermediate Crude oil futures for January ended down $2.30 or about 3.2% at $68.94 a barrel.
Brent crude futures were down $2.07 or about 2.8% at $72.56 a little while ago.
According to reports, Israel has agreed to a ceasefire deal with Lebanon, although its continues to bombard Beirut and Hezbollah militia fires rockets into northern Israel.
Israeli media outlets Haaretz, Walla, Ynet, Kan and American news website Axios reported both parties are getting closer to reaching a deal amid signs of progress in the US-led ceasefire talks.
Meanwhile, the dollar drifted notably lower after President-elect Donald Trump chose hedge fund manager Scott Bessent for Treasury Secretary.
Bessent, who is supportive of the equity markets, is also a known advocate for deficit reduction. His view that Trump's proposed tariff increases should be implemented gradually is expected to reduce the impact of inflation.
'Bessent is seen as being less aggressive on tariffs than some of the rhetoric espoused by Trump on the campaign trail,' according to AJ Bell Investment director Russ Mould.
Traders also looked ahead to the upcoming OPEC+ meeting scheduled to take place on December 1. It is very likely that the group will consider keeping production cuts in place from January 1.
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