Oil Prices Ticked Up Amid Middle East Tensions and OPEC+ Delay
Oil prices edged up on Thursday as tensions in the Middle East escalated and OPEC+ delayed a meeting to discuss production cuts. The Israeli military accused Hezbollah of violating a ceasefire, while Israeli tanks fired on southern Lebanon. The conflict has not impacted oil supply, but has added a risk premium to prices.
Brent crude futures rose 34 cents, or 0.5%, to $73.17 a barrel by 2026 GMT, while U.S. West Texas Intermediate crude futures increased 16 cents, or 0.2%, to $68.88. Trading was thin due to the U.S. Thanksgiving holiday.
The OPEC+ meeting, which was originally scheduled for December 1, was delayed to December 5 to avoid conflicting with another event. The group, which includes the Organization of the Petroleum Exporting Countries and allies such as Russia, is expected to discuss delaying an oil output increase scheduled for January.
Analysts believe it is unlikely that OPEC+ will announce an increase in production at the meeting, as the group is trying to support prices. The delay has already been factored into oil prices, with the only question being whether it will be a one-month or longer delay.
Depressing prices slightly was a report from the U.S. Energy Information Administration showing a 3.3 million barrel increase in U.S. gasoline stocks in the week ending November 22. Slowing fuel demand growth in top consumers China and the U.S. has weighed on oil prices this year.