OV:Oil prices drop as Middle-East cease-fire continues to hold
Oil prices fell today as concerns about supply eased on a continued temporary cease-fire between Israel and Hamas. A cease-fire agreement between Israel and the militant Hamas group that stopped weeklong fighting in the Gaza Strip continues to hold.
Benchmark U.S. crude oil for January delivery was down 28 cents to $87.10 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
The contract had risen 63 cents to settle at $87.38 per barrel on the New York Mercantile Exchange on Wednesday. Markets were closed Thursday for the U.S. Thanksgiving holiday.
GFT technical analyst Fawad Razaqzada said yesterday's 'losses were insignificant' with Middle East concerns diminishing, manufacturing activity data out of China and the U.S. Thanksgiving holiday.
'Traders are just waiting for the next big stimulus to push oil prices in one clear direction, but may not get that stimulus until next week,' said Razaqzada.
"I think it's a bit of reaction to the cease-fire in the Middle East, said Ric Spooner, chief market analyst at CMC Markets in Sydney. Oil prices are "more or less flat-lining, a little bit up and down within a range," he said.
