Oil prices head for 3% weekly decline

Oil prices were steady on Friday and heading for a weekly decline of 3%, pressured by easing concern over supply risks from the Israel-Hezbollah conflict and the prospect of increased supply in 2025 even as OPEC+ is expected to extend output cuts.

Brent crude was down 15 cents, or 0.2%, at $73.13 a barrel by 1655 GMT. US West Texas Intermediate (WTI) crude futures were at $68.87, up 15 cents, or 0.22%, from the last close before Thursday's Thanksgiving holiday.

Trading activity was muted because of the US public holiday. For the week, Brent is down 2.8% while WTI has lost 3.4%.

Four Israeli tanks entered a Lebanese border village, Lebanon's official news agency said on Friday. Both sides have made accusations of ceasefire violations, but the ceasefire that took effect on Wednesday has reduced oil's risk premium, sending prices lower.

However, the Middle East conflict has not disrupted supply, which is expected to be more ample in 2025. The International Energy Agency sees the prospect of more than 1 million barrels per day (bpd) of excess supply – equal to more than 1% of global output.

"The updated snapshot insinuates that next year promises to be looser than the current one and oil prices are to average below the 2024 level," said Tamas Varga of oil broker PVM.

The OPEC+ group comprising the Organisation of the Petroleum Exporting Countries and allies including Russia delayed its next policy meeting to December 5 from December 1. OPEC+ is expected to decide on a further extension to production cuts at the meeting.