US Forces Ceasefire in Gaza, World Oil Prices Plunge

JAKARTA – Oil prices fell to near their lowest level this year on Tuesday (20/8) following increasing hopes for a ceasefire in the Israel-Hamas war.

Brent crude oil prices fell slightly by 1.03% to $76.80 a barrel this morning, down 4.39% for the week and 6.37% for the month. The price is close to the lowest point this year of $75.90 a barrel seen on January 2.

Read Also: US Threatens Israel, Blinken: This Is Last Chance for Ceasefire

Crude oil prices fell 1.05% to $72.8 per barrel. This is a decline of 6.56% for the week and 6.62% for the month. On the other hand, natural gas prices performed better, rising 3.84% for the week and trading at $2.2 per MMBTU as well as TTF gas prices also increased, up 0.94% today.

Hopes for a ceasefire in the Israel-Hamas war have been raised, after Israel recently accepted a US-proposed liaison proposal. However, Hamas has yet to do the same. There are several points of difference that need to be resolved. These include freedom of movement for Palestinians, as well as the Israeli military presence in Gaza.

Ahead of talks with Israeli President Isaac Herzog, US Secretary of State Antony Blinken highlighted the importance of both sides agreeing to a ceasefire. According to Euronews, there is increasing pressure on both sides to reach a deal that Blinken has signaled during talks with Israel as a top priority.

Also Read: Oil Prices Boil After Hamas Leader Ismail Haniyeh Killed in Iran

Not only that, energy companies are under pressure due to falling oil prices. The weakening oil prices are also weighing on energy stocks which are further exacerbated by still weak Chinese demand. This is mainly due to the Chinese economy experiencing weaker growth with higher unemployment rates and declining industrial production.

(nng)