Oil rises amid reports of extending production cuts and violations of the Lebanon truce.

Crude oil prices recorded a notable increase during trading on Tuesday, supported by reports indicating that the "OPEC Plus" alliance intends to extend production cuts until the end of the first quarter of next year. This rise in the markets comes at a time when oil is experiencing optimism due to predictions that support the stability of oil markets in light of these trends.

Performance of Oil Prices in Global Markets

U.S. crude oil contracts rose by 0.67%, reaching a price of $68.55 per barrel, while Brent crude contracts increased by 0.63%, recording $72.33 per barrel. This performance reflects a positive sentiment in the global oil markets, as investors await the results of these moves, which suggest the possibility of extending production cuts beyond the first quarter of 2025.

Main Reasons for the Rise in Crude Oil Prices

Oil prices received strong support from reports indicating that the OPEC Plus alliance is likely planning to extend the latest round of production cuts until the end of the first quarter of 2025 to provide additional support for the global market and maintain a balance between supply and demand. In this context, Reuters reported from informed sources within the alliance that this extension comes at a sensitive time for global oil markets, which have been affected by price fluctuations in recent months.

Moreover, oil prices benefited from rising concerns over renewed tensions in the Middle East, especially following violations by Israel against the ceasefire agreement in Lebanon, where Israel conducted airstrikes on 30 locations in southern Lebanon, resulting in the martyrdom of 9 individuals. This escalation has raised anxiety in the markets, amid fears that it could lead to increased tensions in the region, which could adversely affect the stability of energy markets.

Other Energy Market Contracts:

Alongside the rise in crude oil prices, heating oil contracts also saw an increase of 0.71%, reaching $2.1931 per gallon, while gasoline contracts rose by 0.68% to record $1.9308 per gallon. In contrast, natural gas contracts recorded a drop of 0.68%, settling at $3.192 per million British thermal units, reflecting the ongoing fluctuations in other energy markets.

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