Oil Little Changed in Thin Trading After OPEC Delays Meeting

(Bloomberg) -- Oil was steady as traders watched for any further clues to OPEC ’s production plans after it delayed a key virtual meeting by four days.

Brent crude traded near $73 a barrel after a modest gain on Thursday, with West Texas Intermediate close to $69. The producer group is now set to discuss whether to start reviving supplies, which could tip the market into a glut, at an online gathering on Dec. 5. Delegates said earlier this week that talks have begun on delaying the move.

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

“The crude oil market continues to face uncertainties” around weather, demand and geopolitical developments, said Charu Chanana, chief investment strategist for Saxo Markets Pte in Singapore. “These, together with market oversupply, raise doubts over OPEC unwinding its voluntary production cuts.”

Brent futures remain on track for a weekly loss of almost 3% as a cease-fire between Israel and Iran-backed Hezbollah removed some risk that the conflict would affect supply from the region or affect shipping. Tensions are rising in Ukraine, however, with President Vladimir Putin warning Russian forces could strike “decision-making centers” in Kyiv with new ballistic missiles.   

Trading volumes were lower due to Thursday’s Thanksgiving holiday in the US, with just over 2.25 million contracts of WTI changing hands so far this week on the New York Mercantile Exchange. That’s about half the average weekly volume over the past year.

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