Oil futures fall more than 2% on report that US believes Israel-Hezbollah ceasefire deal was reached
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Oil futures dropped Monday on a report that a ceasefire between Israel and Lebanon-based Hezbollah may have been reached.
West Texas Intermediate (CL=F) sank about 3% to settle at $68.94 per barrel, while Brent (BZ=F), the international benchmark, dropped more than 2% to close at $73.01.
The declines came as Axios reported that Israel and Lebanon have agreed to ceasefire terms, citing a senior US official. Neither party had announced the agreement, according to the report.
Earlier, the Israeli ambassador to Washington said in a radio interview on Monday that deal points still need to be finalized, but an agreement "can happen within days."
Oil was already trading lower Monday morning after the Organization of Petroleum Exporting Countries and their allies (OPEC+) announced its Dec. 1 meeting will be online, a move which traders interpreted as likely to lead to no change in the oil alliance's current production.
OPEC+ has repeatedly delayed winding down some of its voluntary production cuts in order to avoid oversupplying the market when prices are falling.
Wall Street still anticipates an increase in world supply next year in part due to record production from the US and China's waning demand.
Last week JPMorgan analysts reiterated their view for 2025, writing, "We look for a large 1.3 mbd [million barrel per day] surplus and an average Brent of $73, although we expect prices to close the year firmly below $70, with WTI at $64."
Brent is down more than 1% year to date while WTI is flat for the year.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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