Israel Rejects Ceasefire Offer, World Oil Prices Become This Way

World crude oil prices began to move differently after yesterday, Wednesday (8/2/2024) soared above 3% due to Israel rejecting Hamas’ offer of a ceasefire.

As of today, Thursday (9/2/2024) until 09.00 WIB, the price of Brent crude oil has weakened -0.02% to US$ 81.61 per barrel. Meanwhile, light sweet or West Texas Intermediate continued to strengthen by 0.1% to US$ 76.29 per barrel.

The two world crude oil benchmark prices for the week remained in the positive zone, gaining on average more than 5%.

However, United States (US) Secretary of State Antony Blinken said there was still room for negotiations towards an agreement.  A Palestinian Hamas delegation led by senior official Khalil Al-Hayya is scheduled to travel to Cairo today for ceasefire talks with Egypt and Qatar.

The heated geopolitical war in the Middle East then had an impact on a new war front that occurred in the Red Sea, due to the Houthi rebel group attacking logistics ships heading to the Suez Canal.

The Red Sea conflict has claimed many victims, impacting global trade and soaring logistics prices.

On the other hand, the strengthening of oil prices was driven by increasingly decreasing supply. According to reports from the US Energy Information Administration (EIA), US gasoline stocks fell by 3.15 million barrels last week compared to analysts’ estimates of an increase of 140,000 barrels.

“The decline in gasoline stocks and a 13% annual rise in US oil exports to a record 4.06 million barrels per day in 2023 both point to stronger demand for crude oil,” ANZ Research said in a note, quoted by Reuters .

The increase in oil prices also occurred even though there were still differences in views between US central bank officials (Federal Reserve/The Fed) regarding future interest rate policy.

The majority emphasized that the Fed would not cut interest rates until they were confident that inflation would fall to around 2%. However, there are also officials who tend to be dovish .

In addition, the decrease in supply was also followed by the decision of Saudi Arabia, one of the world’s largest oil producing countries that is part of OPEC+, stating that it will continue to voluntarily cut production by 2.2 million barrels per day until the first quarter of 2024.

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