Oil Prices Climb on Weak US Dollar, OPEC+ Shifts Meeting
The prices of crude oil in the global commodities market increased on Friday as the US dollar weakened amidst a ceasefire in the Middle East. Brent crude price inched higher to $72.79 per barrel, while the US benchmark West Texas Intermediate also rose to $68.98 per barrel.
The cease-fire agreement reached between Israel and Lebanon came into force on early Wednesday. Experts predicted that the ceasefire agreement could pressure Israel to end its attack on Gaza. However, the latest statements made by Israeli Prime Minister Benjamin Netanyahu dampened hopes of reaching lasting peace in the region.
Speaking to Israeli Channel 12, Prime Minister Netanyahu said that he would not accept an agreement that would end the attack on Gaza, but they could ‘pause’ the attacks for a prisoner exchange. Arguing that the conditions in Lebanon are different from those in Gaza, Netanyahu said that Israel is trying to ‘eliminate’ Hamas but prevent Hezbollah from rearming.
Concerns that the fight between Israel and Lebanon could turn to ‘intense warfare’ if Hezbollah violates the ceasefire agreement, also help prices increase. Netanyahu said that the Israeli army has been instructed to prepare for a violent war in case of a serious violation of the agreement.
The weakening of the US dollar against other currencies aided the rise in oil prices. The US dollar index, which measures the US dollar’s value against other currencies, fell 0.44% to 105.674. The weak dollar is expected to enhance demand by making oil cheaper for those who use foreign currencies.
Meanwhile, market players expect that there will be no new trade war between China and the US, the world’s largest oil consuming countries. Despite the high tariffs planned by the newly elected US President Donald Trump, news reports claim that China may prefer to negotiate instead of escalating tensions.
Also, the government in China, the world’s largest oil-importing country, is expected to continue implementing steps to support the economy next month in order to reduce the impact of possible tariffs.
The ministerial meeting of the OPEC+ alliance initially scheduled for Sunday has been pushed back to December 5, the Vienna-based Organization of the Petroleum Exporting Countries (OPEC) said Thursday. The 22-member OPEC+ group led by Saudi Arabia and Russia was due to decide on their output policy for 2025 amid flagging crude prices.
The meeting of the alliance has “been rescheduled to… 5 December 2024, as several Ministers will be attending the 45th Gulf Summit in Kuwait City,” OPEC said in a statement. In recent days, oil prices had won support from the prospect that key OPEC+ nations will delay a pick-up in production, which was due to begin in January. Naira Rises as Against Dollar as IOCs Inflows Boost FX Liquidity
