WASHINGTON (dpa-AFX) - Oil prices drifted modestly lower on Tuesday, a day after suffering a sharp loss following reports Israel and Hezbollah are closer to reaching a cease-fire agreement within the next few days.
Traders also assessed the likely impact of U.S. President-elect Donald Trump's pledge to impose 25% tariffs on imports from Canada and Mexico, and additional tariffs on imports from China when he assumes office.
The tariff moves, tax cut plans and deportation, if implemented, are likely to push up inflation and rising debt.
West Texas Intermediate Crude oil futures for January closed down $0.17 at $68.77 a barrel.
Brent crude futures were down $0.31 or 0.46% at $72.17 a little while ago.
'The atmosphere is positive, and cease-fire discussions have reached an advanced stage. It's only a matter of hours before an agreement is finalized and announced if progress continues as expected,' a Lebanese parliamentarian said Monday.
Israeli media outlets Haaretz, Walla, Ynet, Kan and American news website Axios also reported progress in the U.S.-led ceasefire talks.
The ongoing Russia - Ukraine conflict limited oil's downside. Russian forces are advancing in Ukraine at the fastest rate since the early months of the war, according to a U.S.-based thinktank.
Investors are awaiting the OPEC+ meeting due later in the week. The group is very likely that the group will consider keeping production cuts in place from January 1.
Weekly oil reports from the American Petroleum Institute (API) and Energy Information Administration (EIA) are also eyed. The API report is due later today, while the EIA's inventory data will be out Wednesday morning.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
