BLBG:Crude Futures Erase Weekly Advance as Middle East Tension Eases
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.
Futures slid as much as 0.8 percent after the cease-fire crafted by Egypt and the U.S. halted eight days of aerial assaults that killed at least 163 Palestinians and six Israelis. There was no floor trading in the U.S. yesterday because of the Thanksgiving holiday. Brent fell for a second day in London.
“Crude will probably close down on the day as there are no new catalysts and the apparent calming of the situation in Gaza,” Michael Hewson, a London-based market analyst at CMC Markets, said by phone today. “It’s a good day to grab a cup of coffee and kick the feet up.”
West Texas Intermediate for January delivery dropped as much as 0.8 percent 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 at $87.08 at 9:42 a.m. London time. Yesterday’s electronic transactions will be booked with today’s trades for settlement purposes.
To contact the reporter on this story: Jake Rudnitsky in Moscow at jrudnitsky@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net
