The entry into force of the ceasefire between Israel and Hamas caused the price of a barrel of American oil to fall this Friday to its lowest level in six months, falling below the $60 mark.
At around 2:40 pm (Lisbon time), the price of a barrel of West Texas Intermediate (WTI), for delivery in November, fell 2.15% to $60.19, after falling to $59.57, the lowest level since April.
A barrel of North Sea Brent, for delivery in December, fell 1.96%, to $60.19.
Oil prices fall because this agreement “reduces the geopolitical risk premium” and alleviates “fears related to supply disruptions”, Lukman Otunuga, an analyst at FXTM, explained to AFP.
The weakness in crude oil prices is also explained by “clear signs of the long-awaited abundance of the oil market”, visible by the “strong increase in oil in transit at sea”, say, in turn, analysts at DNB Carnegie.
In just a few months, eight members of the Organization of Petroleum Exporting Countries and their allies () have already increased their production quotas by more than 2.5 million barrels per day.
Also read:
