Oil futures ended lower on Thursday as news of a potential cease-fire agreement between Israel and Hamas helped to ease some concerns over risks to global oil supplies. However, the agreement reportedly encountered delays and has not yet been implemented, contributing to market uncertainty.
On Wednesday, oil prices had reached their highest levels since mid-August, supported by data indicating an eighth consecutive weekly decline in U.S. crude inventories. Additional upward pressure stemmed from the Biden administration’s recent sanctions aimed at curbing Russian crude exports.
While prices briefly surpassed $80 per barrel (see our Jan 15th update), they failed to maintain this level, with Middle East geo-political developments halting further advances toward $84. Bearish sentiment now focuses on key support levels at $76 and $71.
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