Crude Oil price retreated over three percent on Monday following 6% gains last week, after multiple reports that Israel and Lebanon had agreed to the terms of a deal to end the Israel-Hezbollah conflict, citing unnamed senior U.S. officials.
Brent crude LCOc1 futures settled at $73.01 a barrel, down 2.87%. U.S. West Texas Intermediate finished at $68.94 a barrel, down 3.23%.
Israel said on Monday it is moving toward a ceasefire in the war with Hezbollah but there are still issues to address, while Lebanese officials voiced guarded optimism but said Israeli Prime Minister Benjamin Netanyahu was not to be trusted.
A report that Israel’s Prime Minister Netanyahu approves Lebanon ceasefire deal in principle could be a bearish catalyst, yet we must see more details as they become available. Last week the world was stunned as Russia launched supersonic missiles” at Ukraine.
Both Brent and US WTI contracts last week notched their biggest weekly gains since late September to reach their highest settlement levels since Nov. 7 after Russia fired a hypersonic missile at Ukraine in a warning to the United States and the UK following strikes by Ukraine on Russia using U.S. and British weapons.
OPEC+, at its next meeting on Sunday, may consider leaving its current oil output cuts in place from Jan. 1, Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters.
The group, which includes the Organization of Petroleum Exporting Countries plus allies like Russia, has postponed hikes this year amid demand worries.
Azerbaijan is a member of OPEC+, which will meet online on Dec. 1.
Investors were also focused on rising crude oil demand in China.
China’s crude imports rebounded in November as lower prices drew stockpiling demand. Chinese crude imports are likely to be further lifted by an additional import quota of at least 5.84 million metric tons (116,800 bpd) issued to independent refiners for cargoes arriving into next year, people familiar with the situation said on Monday.
Technical Outlook – Crude oil Price
Crude oil price posted a minor loss on Monday, settling at 5826, down 3.35% from Friday’s close of 6028. Since November 18, prices have staged a recovery rally, gaining over 6% from the low of 5628 to the recent high of 6035.
The current price structure suggests consolidation below the 6150 resistance. A break above 6150 could drive further gains toward 6275-6380. Alternatively, any rise towards 5955-5877 will attract selling pressure.
Furthermore, Immediate support is at 5810 a break below may drop towards 5745-5665 in a near future.
Until then, Happy Trading!
Commodity Samachar Securities
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