Oil prices mixed amid accusations of breaches to Israel-Hezbollah ceasefire
2024.11.28 22:07
By Colleen Howe
BEIJING (Reuters) – Oil prices were mixed on Friday following a potential renewal of supply risk as Israel and Hezbollah traded accusations of ceasefire violations, and as a delay to an OPEC+ meeting left investors awaiting a decision on its output policy.
futures fell by 7 cents, or 0.1%, to $73.21 a barrel by 0232 GMT. U.S. West Texas Intermediate crude futures were at $69.10, up 38 cents, or 0.55%, compared to Wednesday’s closing price.
Trading remained thin due to the Thanksgiving holiday on Thursday that shut U.S. financial markets.
Israel and Lebanese armed group Hezbollah traded accusations on Thursday over alleged violations of their ceasefire that came into effect the day before. The deal had at first appeared to alleviate the potential for supply disruption from a broader conflict that had led to a risk premium for oil.
Oil supplies from the Middle East have been largely unaffected during Israel’s parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.
Also on Thursday, Russia struck Ukrainian energy facilities for the second time this month. ANZ analysts said the attack risked retaliation that could affect Russian oil supply.
OPEC+, the Organization of the Petroleum Exporting Countries and allies including Russia, delayed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event. The meeting is expected to further extend OPEC+ production cuts.
Iran told a U.N. nuclear watchdog it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, a confidential report by the watchdog said on Thursday.
Analysts at Goldman Sachs have said Iranian supply could drop by as much as 1 million barrels per day in the first half of next year if Western powers tighten sanctions enforcement on its output.
