Oil prices fell on Friday, approaching a weekly loss of more than 3%, with concerns about the confrontations between Israel and Lebanese Hezbollah receding and the possibility of increasing supply during the next year despite expectations that OPEC Plus will extend the production cuts.
The National News Agency in Lebanon said on Friday that 4 Israeli tanks penetrated the western neighborhood of the border town of Khiam.
The two sides exchanged accusations of violating the ceasefire. However, the truce that entered into force on Wednesday reduced the risk premium on oil, causing its prices to fall.
Brent crude futures fell 34 cents, or 0.46%, to $72.94 per barrel upon settlement.
US West Texas Intermediate crude futures fell 72 cents, or 1.05%, to $68 per barrel.
Yesterday, Thursday, was a holiday in the United States on the occasion of Thanksgiving. !
On a weekly basis, Brent crude futures fell 3.1%, while West Texas Intermediate crude fell 4.8%.
The conflict in the Middle East has not disrupted oil supplies, which are expected to be more abundant in 2025.
The International Energy Agency expects a surplus supply of more than one million barrels per day, equivalent to more than 1% of global production.
The OPEC Plus alliance – which includes the countries of the Organization of the Petroleum Exporting Countries and allies, including Russia – postponed its next meeting on production policy to the fifth of next December, after it was scheduled to be held on the first of next month. The meeting is expected to extend the alliance’s production cuts.
Analysts at BMI said in a report, “Although we expect the OPEC+ group to choose to extend the current cuts into the new year, this will not be enough to completely dissipate the impact of the surplus production that we expect for next year.”
A Reuters poll of 41 analysts showed that the average price of Brent crude may reach $74.53 per barrel in 2025, a downward revision for the seventh month in a row in Reuters polls.
