Oil prices declined by 3% this week, driven down by easing concerns over supply risks amid the Israel-Hezbollah conflict and expectations of increased global supply in 2025.
Brent crude futures fell to $72.94 per barrel, while US West Texas Intermediate crude futures dropped to $68 per barrel. The decline was largely due to muted trading activity on Friday’s US public holiday.
However, analysts say the Middle East conflict has not disrupted oil supplies, which are expected to increase in 2025, with the International Energy Agency forecasting over 1 million barrels of excess supply by next year. This is equivalent to around 1% of global output.
OPEC+ is set to decide on extending production cuts at its meeting scheduled for December 5. The group’s decision may impact oil prices further.
Source: https://www.cnbc.com/2024/11/29/oil-prices-mixed-amid-accusations-of-breaches-to-israel-hezbollah-ceasefire.html