Oil Drifts Lower in Thin Trading on Cease-Fire, OPEC Delay-OxBig News Network

(Bloomberg) — Oil drifted lower in thin post-holiday trading on uncertainty about OPEC ’s production plans and the durability of a truce between Israel and Lebanon-based Hezbollah.

Brent shed 1.3% to settle below $72 a barrel. A cease-fire deal that halted more than a year of fighting between Israel and Hezbollah appeared to be holding, despite both sides trading accusations of violations. The dollar snapped an eight-week winning streak, making commodities priced in the currency more attractive. West Texas Intermediate settled at $68 a barrel. 

OPEC and its allies face a decision about whether to revive curtailed production amid expectations of a glut next year. The group’s online gathering is now scheduled for Dec. 5, but OPEC delegates said earlier this week that talks have begun on delaying restoring output again.

“The market appears to be brushing off concerns that the delay in the OPEC meeting signals internal disagreements within the group,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group.

Crude has traded in a tight range since the middle of October, flipping between weekly gains and losses. Prices have been buffeted by fluctuating geopolitical tensions in the Middle East, waning demand in top importer China and concerns that President-elect Donald Trump’s upcoming policies may affect supply from Russia and Iran.

Trading volumes were lower due to Thursday’s Thanksgiving holiday, with about 2.76 million contracts of WTI changing hands in the US so far this week — about two-thirds the average weekly volume over the past year.

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–With assistance from Alex Longley.

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