Oil Markets In Wait-And-Watch Mode As Israel-Lebanon Talks Expected To Impact Peace Efforts

Oil prices continued to remain stable for the third consecutive day on Thursday as Israel and Lebanon are scheduled to hold talks in Washington to end the former’s attacks on the latter. The United States and Iran are also heading for a second round of peace talks in Pakistan’s Islamabad.

Global oil benchmark Brent Crude was hovering at around $95 per barrel during Asian trade hours, with a marginal rise of 0.1 percent compared to the previous day.

The US’ WTI Crude also remained muted, gaining 0.5 percent to trade at around $91 per barrel.

The stability came after heightened volatility in prices when the US and Iran ended peace talks last week without any progress.

Oil prices have declined over 15 percent since then to stabilise at around $95 per barrel.

US President Donald Trump has said the war was “close to over” even as the US blockade of the Strait of Hormuz continued. The two-week ceasefire agreed upon by the two nations is set to end on April 22, prompting them to return to the negotiating table to at least extend the halt on hostilities while broader discussions continue.

Despite progress on the diplomatic front, the shortage of the commodity has kept the market concerned.

While the US and Iran are preparing for a second round of talks, discussions between Israel and Lebanon are expected to influence developments in Islamabad.

The world is grappling with a severe energy crisis after oil supplies from the Gulf region virtually stopped since the start of the war.

Even if the ceasefire is extended or the war comes to an end, restoring damaged oil and gas infrastructure in the Gulf region will take months, if not years, according to experts.