Oil up as Israel, Hezbollah trade accusations of ceasefire violation
Shafaq News/ Oil prices ticked up on Thursday after Israel and Lebanesearmed group Hezbollah traded accusations that their ceasefire had beenviolated, and as Israeli tanks fired on south Lebanon.
OPEC+ also delayed by a few days a meeting likely to extend productioncuts.
Brent crude futures edged up by 34 cents, or 0.5%, to $73.17 a barrel by2026 GMT. U.S. West Texas Intermediate crude futures were up 16 cents, or 0.2%,at $68.88. Trading was thin because of the U.S. Thanksgiving holiday.Israel's military said the ceasefire was violated after what it calledsuspects, some in vehicles, arrived at several areas in the southern zone.
The deal, which took effect on Wednesday, was intended to allow peoplein both countries to start returning to homes in border areas shattered by 14months of fighting.
The Middle East is one of the world's major oil-producing regions, andwhile the ongoing conflict has not so far not impacted supply it has beenreflected in a risk premium for traders.Elsewhere, OPEC+, comprising the Organization of the Petroleum ExportingCountries and allies including Russia, delayed its next policy meeting to Dec.5 from Dec. 1 to avoid a conflict with another event.
Also supporting prices, OPEC+ sources have said there will again bediscussion over another delay to an oil output increase scheduled for January.
"It's highly unlikely they are going to announce an increaseproduction at this meeting," said Rory Johnston, analyst at CommodityContext.
The group pumps about half the world's oil but has maintained productioncuts to support prices. It hopes to unwind those cuts, but weak global demandhas forced it to delay the start of gradual increases.
A further delay has mostly been factored in to oil prices already, saidSuvro Sarkar at DBS Bank. "The only question is whether it's a one-monthpushback, or three, or even longer."
Depressing prices slightly, U.S. gasoline stocks rose 3.3 millionbarrels in the week ending Nov. 22, the U.S. Energy Information Administrationsaid on Wednesday, countering expectations of a small draw in fuel stocks aheadof holiday travel.Slowing fuel demand growth in top consumers China and the U.S. has weighed onoil prices this year.
(Reuters)
