Investing.com — Oil prices fell on Friday but continued higher this week as investors monitored developments on OPEC’s production strategy following a four-day postponement of a crucial virtual meeting.
Crude was battered by the announcement of a ceasefire between Israel and the Lebanese militant group Hezbollah, although it remains to be seen whether the ceasefire will hold.
Increased tensions between Russia and Ukraine – following a grueling series of strikes against Kiev – limited support for crude, while overall trading volumes were limited due to the US Thanksgiving holiday.
Oil due in January fell 0.6% to $72.28 per barrel, down 0.3% to $68.51 per barrel at 1:20 ET (1820 GMT).
OPEC+ meeting awaited more production clues
The Organization of the Petroleum Exporting Countries and allies, including Russia (OPEC+), will meet next week. The meeting was postponed from December 1 to December 5, reports said, and is expected to be a virtual meeting.
Other reports suggested the cartel is likely to further push back plans to start increasing output at its December meeting amid continued weakness in oil prices.
Slowing demand in top importer China is a major concern for OPEC+, with the cartel also steadily lowering its outlook for oil demand in the coming year.
Oil faces weekly losses on Israel’s ceasefire
and WTI prices each fell about 3% this week as traders priced in a smaller risk premium after Israel and Hezbollah agreed to a ceasefire.
The ceasefire poses fewer risks of oil supply disruptions in the Middle East, although Israel has continued its offensive in Gaza.
Israel and Hezbollah also accused each other on Thursday of violating the ceasefire, raising some doubts about the duration of the truce.
The ceasefire was brokered by the US and France, with the Biden administration also pushing for a ceasefire in Gaza before Donald Trump took office in January.
Elsewhere, tensions between Russia and Ukraine remained high after Russia carried out a series of debilitating attacks on Ukraine, targeting the country’s electricity grid.
(Ambar Warrick contributed to this article)
