By Nicole Jao
NEW YORK (Reuters) -Oil prices fell on Friday, posting a weekly decline of more than 3%, pressured by easing concerns about supply risks from the Israeli-Hezbollah conflict and the prospect of increased supply in 2025, even as OPEC+ is expected to increase. extend production cuts.
fell 34 cents, or 0.46%, to settle at $72.94 a barrel. U.S. West Texas Intermediate crude futures fell 72 cents, or 1.05%, to settle at $68 from Thursday’s last close before the Thanksgiving holiday.
Trading activity was subdued due to the US holiday.
Brent fell 3.1% this week, while WTI lost 4.8%.
Four Israeli tanks entered a Lebanese border village, Lebanon’s official news agency said on Friday. The ceasefire that came into effect on Wednesday has reduced the risk premium for oil, causing prices to fall despite accusations of violations by both sides.
However, the conflict in the Middle East has not disrupted supply, which is expected to increase by 2025. The International Energy Agency sees the prospect of an oversupply of more than 1 million barrels per day (bpd), which amounts to more than 1% of supply. global production.
“The updated snapshot insinuates that next year promises to be looser than the current one and that oil prices will average below 2024 levels,” said Tamas Varga of oil broker PVM.
The OPEC+ group, made up of the Organization of the Petroleum Exporting Countries and allies including Russia, has postponed its next policy meeting from December 1 to December 5. OPEC+ is expected to decide on a further extension of production cuts at the meeting.
“After two postponements, the group must consider the risk of further price weakness amid the release of currently unwanted barrels, not least as expectations for robust production from non-OPEC+ producers next year lead to a surplus of crude oil could lead,” said an analyst from Saxo Bank. Ole Hansen.
Brent could average $74.53 per barrel by 2025, according to a Reuters poll of 41 analysts. That was the seventh consecutive monthly downgrade in the Reuters poll.
