Political factors drove crude oil prices down

Due to the active involvement of the international community in the Palestinian-Israeli conflict and the possibility of the existence of a ceasefire agreement between the two sides, international crude oil prices fell sharply on the 20th. By the close, the New York Mercantile Exchange's January delivery of light crude oil prices fell 2.53 US dollars to close at 86.75 US dollars per barrel, a decrease of 2.83%. January Brent crude oil prices in January delivery It fell 1.87 US dollars to close at 109.83 US dollars a barrel, a decrease of 1.67%.

Since Israel’s air strike on the Gaza Strip on the 14th, the international crude oil market has been worried that the ongoing conflict between Palestine and Israel will cause oil supply disruption in the Middle East and endanger global oil supply. As a result, oil prices continue to rise. However, the positive news of a ceasefire agreement on the 20th is greatly weakened. This concern of investors.

On the same day, a Hamas official who was engaged in a ceasefire consultation with the Israeli delegation in Cairo and Cairo expressed that the two sides have reached a ceasefire agreement. Even though Egypt’s mediation has continued, the Egyptian government still said that although the ceasefire agreement has achieved positive progress, it has not yet reached final agreement. Israel also denied having reached a ceasefire agreement, but the market’s expectation of a ceasefire agreement between Palestine and Israel has increased, and the promotion of geopolitical factors has drastically reduced, triggering a sharp drop in oil prices.