Oil falls on potential deal to end Israel-Hezbollah conflict
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Oil prices declined due to the potential ceasefire between Israel and Hezbollah, reducing the risk premium associated with oil.
November 26, 2024 | 2:00 am
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The United States Brent Oil Fund (BNO) may experience a short-term decline in value as oil prices fall due to a potential ceasefire between Israel and Hezbollah, which reduces the geopolitical risk premium.
BNO is directly linked to Brent oil prices, which are affected by geopolitical tensions. A potential ceasefire reduces the risk premium, leading to lower oil prices and potentially impacting BNO negatively.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80