Analyst: Crude oil overreacts to ceasefire news

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On November 26th, Jinshi Data reported that crude oil fell sharply after dumping when news came out that a ceasefire protocol might be reached in Libya, and rebounded slightly on Tuesday. Priyanka Sachdeva, senior market analyst at Phillip Nova, said that the market’s reaction to the ceasefire news was “overdone”. Although this news eased concerns about supply disruptions in the Middle East, the conflict between Israel and Hamas has never seriously disrupted supplies and caused war premiums this year. The fragility of oil prices in geopolitics lacks a solid support, plus the inability to maintain recent gains, reflecting the weakening global demand for oil, indicating that the future market will continue to be volatile.

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