Oil futures: Crude eases as Brent heads for weekly losses
Quantum Commodity Intelligence - Crude oil futures in Friday were slightly lower and heading for weekly losses amid mixed pricing signals.
Feb25 ICE Brent futures were trading at $72.35/b (1800 GMT) versus the day's low of $72.03 Thursday's settle of $72.78/b, while Jan25 was trading at $73.08/b heading into the contract expiry.
At the same time Jan25 NYMEX WTI was trading at $68.58/b, versus Thursday's settle of $68.72/b, amid thin trading ahead of the Thanksgiving holiday weekend.
Investors will have to wait until next Thursday to find out OPEC+ policy for 2025, although a further delay on planned output hikes is increasingly priced in.
The official reason for the OPEC+ delay was a scheduling conflict with the regional GCC meeting, although some analysts said it could be the group is still working on a consensus for a new timeline for unwinding cuts.
"OPEC+ has introduced new uncertainties by delaying its upcoming meeting. Signals from OPEC+ delegates earlier this week indicate ongoing discussions about postponing this move, potentially for several months," said Ole R. Hvalbye, commodities analyst at SEB, adding the group is "acutely aware" of the delicate balance between supply and demand.
Lebanon
Geopolitics were also keeping markets on edge as the fragile ceasefire between Israel and Hezbollah faced an early test as the two sides alleged violations.
While not impacting oil flows directly, analysts said that a resumption in hostilities increases the likelihood of tighter sanctions against Iran, while it could also see an increase in Houthi activity against shipping interests in the Red Sea.
Meanwhile, Russia continues to pound Ukraine's energy infrastructure, increasing the likelihood that Ukraine will respond in kind, which could impact refining and oil flows.
Benchmarks are lower on the week after the ceasefire between Israel and Hezbollah was announced.
Last Friday, Jan24 Brent futures closed at $75.17/b, while Dec24 WTI settled at $71.24/b.
