(Reuters) – Oil prices rose slightly on Friday as investors awaited a decision on production policy after Israel and Hezbollah traded accusations of ceasefire violations and delayed OPEC+ meetings.
At 0516 GMT, futures were up 10 cents, or 0.1%, at $73.38 a barrel. U.S. West Texas Intermediate crude oil futures rose 45 cents, or 0.7%, to $69.17 from Wednesday’s close.
On a weekly basis, North Sea Brent futures were trading 2.4% lower and the US WTI benchmark was trading 2.9% lower. Trading was light on Thursday as U.S. financial markets were closed for the Thanksgiving holiday.
Israel and the Lebanese militant group Hezbollah exchanged accusations on Thursday over alleged violations of a ceasefire that took effect the day before. The agreement was initially seen as reducing the potential for supply disruptions from widespread conflict that had led to a risk premium for oil.
But oil supplies from the Middle East remain largely unaffected while Israel is engaged in parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.
OPEC+, the Organization of the Petroleum Exporting Countries, and its allies, including Russia, have postponed their next policy meeting from Dec. 1 to Dec. 5 to avoid a scheduling conflict. OPEC+ is expected to extend production cuts further at the meeting.
BMI, a unit of Fitch Solutions, on Friday revised down its 2025 Brent price forecast to $76/bbl from $78/bbl, citing “weak fundamental outlook, oil market sentiment. “continued weakness in the market and expected downward pressure on prices.” Under Trump. ”
“We expect the OPEC+ group to choose to roll over existing production cuts into the new year, but this will not be enough to fully eliminate the production overhang expected next year,” BMI analysts said in a note. said.
Also on Thursday, Russia attacked energy facilities in Ukraine for the second time this month. Analysts at ANZ said the attack carried the risk of retaliation that would impact Russian oil supplies.
Iran has told the United Nations nuclear watchdog that it will install more than 6,000 additional uranium enrichment centrifuges at its enrichment plant, the watchdog said in a confidential report on Thursday.
Analysts at Goldman Sachs said Iranian supplies could fall by up to 1 million barrels a day in the first half of next year if Western countries tighten sanctions on Iranian output.
