Crude dropped in New York, erasing a weekly advance, after a truce between Israel and Hamas held for a second day, easing concern that the conflict would disrupt supplies from producers in the Middle East.
West Texas Intermediate declined as much as 0.8 percent after a Egypt-U.S.-crafted cease-fire halted eight days of aerial assaults that killed at least 167 Palestinians and six Israelis. Crude may decline next week following the cessation of hostilities, according to a Bloomberg survey. There was no U.S. floor trading on Thursday 22nd November, because of the Thanksgiving holiday.
Futures for January delivery dropped as much as 67 cents to $86.71 a barrel in electronic trading on the New York Mercantile Exchange. That’s within 4 cents of last week’s close. Futures were down 7 cents to $87.31 at 1:15 p.m. London time. Yesterday’s electronic transactions will be booked with today’s trades for settlement purposes.
Brent for January settlement rose 9 cents to $110.64 a barrel on the London-based ICE Futures Europe exchange and is heading for a weekly gain of 1.6 percent. The European benchmark crude was at a premium of $23.33 to New York-traded WTI grade.