By The Rio Times | Created at 2025-01-16 22:10:27 | Updated at 2025-01-31 07:03:13
2 weeks ago
On Thursday, February 16, oil futures closed down nearly 1% as tensions in the Middle East eased, according to economic news sources. Despite ongoing concerns regarding increased U.S. sanctions on Russian oil, traders responded to the changing geopolitical landscape.
At the New York Mercantile Exchange (Nymex), March WTI crude oil fell by 1.09%, or $0.86, settling at $77.85 per barrel. Meanwhile, Brent crude for the same month on the Intercontinental Exchange (ICE) decreased by 0.90%, or $0.74, ending at $81.29 per barrel.
The recent ceasefire agreement between Israel and Hamas played a significant role in this price drop. Additionally, Houthi rebels indicated a potential end to hostilities in the Red Sea, further contributing to declining commodity prices.
ANZ Research noted that while the conflict had minimal impact on the market recently. However, this agreement suggests a reduced likelihood of broader conflict involving Iran. Although tensions have eased, stricter U.S. sanctions on Russian oil trade remain a concern for traders.
Oil Prices Decline Amid Easing Tensions in the Middle East. (Photo Internet reproduction)Analysts express uncertainty about how President-elect Donald Trump will approach this issue once he takes office on Monday. Trump has promised to resolve the ongoing conflict in Ukraine swiftly.
Edward Fishman, a former U.S. sanctions authority, is currently a member of Columbia University’s Center on Global Energy Policy. He commented that these sanctions represent some of the most significant measures since Russia’s invasion of Ukraine.
Analysts from MUFG warn that current oil prices may not sustain their levels due to ongoing sanctions against Russian crude and projected global oversupply this year. They assert that the present strength of oil prices is not sustainable in the long term.
