Investing.com — Oil prices fell sharply lower on Tuesday after reports that Hezbollah is seeking a ceasefire with Israel eased concerns about a broader conflict in the Middle East that is depleting oil supplies.
At 2:30 PM ET (1830 GMT), the stock fell 4.6% to $73.57 per barrel, while the stock fell 4.3% to $77.44 per barrel.
Hezbollah ceasefire calls for oil dents
Hezbollah deputy leader Naim Qassem said on Tuesday that the militant group supports efforts by Lebanese parliament speaker Nabih Berri, a Hezbollah ally, to broker a ceasefire with Israel, multiple media outlets reported on Tuesday.
The possibility of a ceasefire allayed some concerns about the broader Middle East conflict causing disruptions in the oil-rich region.
Prime Minister Benjamin Netanyahu said on Tuesday that Israeli airstrikes have killed two successors to Hezbollah leader Hassan Nasrallah, whose killing has escalated tensions.
The lack of new Chinese measures is weighing
What weighed on crude markets on Tuesday was the lack of new stimulus measures from Chinese authorities as the country returned from its weeklong holiday.
China said on Tuesday it was “confident” of achieving its full-year growth target but refrained from introducing stronger fiscal measures, disappointing investors who had expected more support for the economy.
Disappointment with the strength of China’s economic recovery was one of the main factors holding back the crude oil market, given China’s role as the world’s largest crude oil importer.
Hurricane Milton in focus
Oil markets were also looking ahead to the impact of Hurricane Milton on US oil production, with the storm expected to pass through the Gulf of Mexico before making landfall on the west coast of Florida this week.
Although 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 oil stocks expire
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 1.9 million barrels in the week ending Oct. 4, it shows from a preliminary Reuters poll.
The official figure from the Energy Information Administration will be released on Wednesday.
(Peter Nurse, Ambar Warrick contributed to this article.)