Investing.com — Oil prices settled sharply lower Tuesday as reports that Hezbollah is seeking a ceasefire with Israel helped ease concerns about a wider Middle East conflict denting oil supplies.
At 2:30 p.m. ET (1830 GMT), fell 4.6% to settle at $73.57 a barrel, while fell 4.3% to $77.44 a barrel.
Hezbollah ceasefire call dents oil
Hezbollah deputy leader Naim Qassem said on Tuesday that the militant group backed efforts of Lebanon’s Speaker of Parliament Nabih Berri, a Hezbollah ally, to secure a ceasefire with Israel, multiple media reported Tuesday.
The potential for a ceasefire eased some concerns about wider Middle East conflict leading to disruptions in the oil-rich region.
Prime Minister Benjamin Netanyahu said on Tuesday Israeli airstrikes had killed two successors to Hezbollah’s Hassan Nasrallah, whose assassination has led to escalating tensions.
Lack of new Chinese measures weigh
Weighing on the crude markets Tuesday was the lack of new stimulus measures from the Chinese authorities as the country returned from its week-long holiday.
China said on Tuesday it was “fully confident” of achieving its full-year growth target but refrained from introducing stronger fiscal steps, disappointing investors who had banked on more support for the economy.
Disappointment over the strength of the Chinese economic recovery has been on the main weights holding the crude market back, given China’s role as the world’s largest crude importer.
Hurricane Milton in focus
Oil markets were also watching for the impact of Hurricane Milton on U.S. oil production, with the storm set to pass through the Gulf of Mexico before making landfall at the west coast of Florida this week.
While the hurricane is expected to miss most oil infrastructure in the Gulf of Mexico, several ports in the region were seen imposing restrictions, which could potentially disrupt oil shipments.
API crude inventories due
The latest U.S. crude oil inventory data, from the American Petroleum Institute, is due later in the session, and analysts expect stocks to rise by 1.9 million barrels in the week ended Oct. 4, according to a preliminary Reuters poll.
The official tally from the Energy Information Administration is scheduled for release on Wednesday.
(Peter Nurse, Ambar Warrick contributed to this article.)