Energy
Tuesday, January 23rd, 2024 6:48 pm EDT
Key Points
- Oil prices remained mostly flat as Israel proposed a two-month pause in fighting in Gaza, signaling a potential de-escalation in the conflict.
- China is considering a $278 billion rescue package to support its struggling stock market, which could positively impact oil demand, easing concerns about a slowdown in China’s economy affecting crude demand.
- Geopolitical tensions, including a suspected Ukrainian drone strike on a Russian fuel terminal and U.S. and Britain launching airstrikes against Houthi militants in Yemen, contributed to a 2% rally in oil prices. However, the potential threats were tempered by mixed signals in oil supply, with cold weather impacting U.S. output while Libya restarted production at the Sharara oilfield.
The article reports that oil prices remained mostly steady as investors monitored developments suggesting a potential two-month pause in the conflict in Gaza. Israel proposed the pause in exchange for the release of remaining hostages by Hamas, marking a significant de-escalation if agreed upon. However, Hamas rejected the proposal, demanding Israel to end its offensive and withdraw from Gaza. The Israeli military has surrounded the city of Khan Younis amid ongoing intense fighting. In a positive development for the market, China is reportedly considering a $278 billion rescue package to support its struggling stock market, potentially boosting oil demand. Oil prices rose about 2% on Monday after a suspected Ukrainian drone strike on a major Russian fuel terminal highlighted geopolitical threats to crude supplies. The U.S. and Britain launched airstrikes against Houthi militants in Yemen, who have targeted commercial vessels in the Red Sea. Cold weather has impacted oil output in North Dakota, while Libya restarted production at the Sharara oilfield after a two-week shutdown due to protests, adding mixed signals to the global oil supply scenario.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/23/oil-prices-fall-as-investors-monitor-supply-threats-libya-production-restart.html
