Brent oil fell for a second day in London, paring a weekly gain, as a cease-fire between Israel and Hamas eased concern that tension in the Middle East will disrupt the region’s crude supplies.
Futures slid as much as 0.3 per cent, matching yesterday’s decline. The cease-fire crafted by Egypt and the US halted eight days of aerial assaults that ravaged the Gaza Strip and made Tel Aviv a missile target. West Texas Intermediate futures have dropped in New York since the Nov. 21 accord. There was no floor trading in the US yesterday because of the Thanksgiving holiday, and electronic transactions will be booked with today’s trades for settlement purposes.
Brent oil for January settlement fell as much 38 cents to $US110.17 a barrel on the London-based ICE Futures Europe exchange and was at $US110.24 at 10:04 a.m. Singapore time. Prices slipped 31 cents to $US110.55 yesterday. Futures are up 1.2 per cent this week and 2.7 per cent this year. The European benchmark grade traded at a premium of $US23.32 to its US counterpart.
WTI for January delivery was at $US86.92 a barrel in electronic trading on the New York Mercantile Exchange, down 0.5 per cent from the Nov. 21 close. The contract has gained 0.3 per cent this week and dropped 12 per cent this year.
Brent in London has technical resistance along its 200-day moving average, around $US111.68 a barrel today, according to data compiled by Bloomberg. Futures have halted advances below this indicator twice so far this month. Sell orders tend to be clustered near chart-resistance levels.
New York crude futures may decline next week after the tension eased in the Middle East, a Bloomberg survey showed. Twelve of 27 analysts and traders, or 44 per cent, forecast prices will decrease through Nov. 30. Nine respondents, or 33 per cent, predicted a gain. Six forecast little change.