2024-11-30 02:34:38 :
(Bloomberg) — Oil prices were lower in thin post-holiday trading amid uncertainty over OPEC’s production plans and the durability of a truce between Israel and Lebanon’s Hezbollah.
Brent crude oil prices fell 1.3%, falling below $72 a barrel. A ceasefire agreement between Israel and Hezbollah that halted fighting for more than a year appears to remain in place despite accusations of violations from both sides. The dollar ended eight straight weeks of gains, making U.S. dollar-denominated commodities more attractive. West Texas Intermediate crude settled at $68 a barrel.
OPEC and its allies face a decision on whether to resume production cuts amid an expected supply glut next year. The group’s online gathering is currently scheduled for December 5, but OPEC representatives said earlier this week that talks had begun on another delay in resuming output.
“The market appears to be brushing off concerns that the postponement of the OPEC meeting points to divisions within the group,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group.
Crude oil prices have been trading within a tight range since mid-October, swinging back and forth between weekly gains and losses. Prices have been hit by volatile geopolitical tensions in the Middle East, weakening demand from top importer China and concerns that President-elect Donald Trump’s upcoming policies could impact supply from Russia and Iran.
About 2.76 million WTI contracts have changed hands in the United States so far this week, about two-thirds of average weekly trading volume over the past year, as trading volumes fell due to the Thanksgiving holiday on Thursday.
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—With help from Alex Longley.
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