Oil mixed as Israel and Hezbollah accuse each other of breaking ceasefire

Beijing  — Oil prices were mixed on Friday after a potential renewal of supply risk as Israel and Hezbollah traded accusations of ceasefire violations, and as a delay to an Opec+ meeting left investors awaiting a decision on its output policy.

Brent crude futures fell by 7c, or 0.1%, to $73.21 a barrel by 2.32am GMT. US West Texas Intermediate (WTI) crude futures were at $69.10, up 38c, or 0.55%, compared with Wednesday’s closing price.

Trading remained thin due to the Thanksgiving holiday on Thursday that shut US financial markets.

Israel and Lebanese armed group Hezbollah traded accusations on Thursday over alleged violations of their ceasefire that came into effect the day before. The deal had at first appeared to alleviate the potential for supply disruption from a broader conflict that had led to a risk premium for oil.

Oil supplies from the Middle East have been largely unaffected during Israel’s parallel conflicts with Hezbollah in Lebanon and Hamas in Gaza.

Also on Thursday, Russia struck Ukrainian energy facilities for the second time this month. ANZ analysts said the attack risked retaliation that could affect Russian oil supply.

Opec+, oil cartel Opec and allies including Russia, delayed its next policy meeting to December 5 from December 1 to avoid a conflict with another event. The meeting is expected to further extend Opec+ production cuts.

Iran told a UN nuclear watchdog it would install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants, a confidential report by the watchdog said on Thursday.

Analysts at Goldman Sachs have said Iranian supply could drop by as much as 1-million barrels a day in the first half of next year if Western powers tighten sanctions enforcement on its crude oil output.

Reuters