Brent for December traded near USD 72 a barrel after closing slightly higher on Monday, with West Texas Intermediate surpassing USD 68. Israel’s military announced targeted strikes against Hezbollah positions in southern Lebanon. 

Meanwhile, Libya is gearing up to resume production following a compromise between its two rival governments, as reported by sources familiar with the matter.

At the beginning of the fourth quarter, oil prices stabilised as tensions in the Middle East, including Israel’s initiation of ground operations in Lebanon, competed with the potential resumption of Libyan oil production.

The global crude benchmark experienced a nearly 17% drop in the last quarter and is currently lower year-to-date. The anticipation of the Organization of the Petroleum Exporting Countries plus (OPEC+) following through on its plans to ramp up production, as well as a slowdown in China despite substantial stimulus unveiled last week, have exerted downward pressure on prices.

OPEC+ is set to convene an online monitoring meeting on Wednesday as the coalition prepares to boost production. Russian Deputy Prime Minister Alexander Novak stated last week that the group will commence reintroducing supply in December and is not considering any new proposals.

Since the killing of the chief of the Iranian-backed group on Friday, Israel has escalated its attacks on Hezbollah in Lebanon. Despite the hostilities, oil prices have not reacted to the situation, and the production and transportation of crude in the Middle East remain unaffected.

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