Oil prices edged lower in Asian trade on Friday and were headed for a weekly loss on expectations of easing tensions in the Middle East, with focus shifting to the upcoming OPEC+ meeting.

Crude was hit by the announcement of a ceasefire between Israel and the Lebanese militant group Hezbollah, although whether the truce will hold remains unclear.

Escalating tensions between Russia and Ukraine - following a series of debilitating attacks on Kyiv - provided limited support to crude, while overall trading volumes were limited due to the U.S. Thanksgiving holiday.

Brent crude futures expiring in January fell 0.1% to $73.21 a barrel, while West Texas Intermediate crude futures were steady at $69.10 a barrel by 9:19 p.m. ET (02:19 GMT). The OPEC+ meeting is awaited for further output cues.

The Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), meet next week. The meeting has been postponed to December 5 from December 1, according to reports, and is expected to be a virtual gathering.

Other reports suggest the cartel is likely to further delay plans to start raising output during the December meeting, amid continued weakness in oil prices.

Slowing demand in top importer China has been a major concern for OPEC+, with the cartel also continuing to cut its outlook for oil demand in the coming year.

Oil prices head for weekly loss on Israel truce

Brent and WTI prices are trading down about 3% each this week, as traders price in lower risk premiums after Israel and Hezbollah agreed to a ceasefire.

The truce poses less risk of disruption to oil supplies in the Middle East, although Israel is continuing its attacks on Gaza.

Israel and Hezbollah also accused each other of violating the ceasefire deal on Thursday, raising doubts about how long the truce will last.

The truce was brokered by the US and France, with the Biden administration also seen pushing for a ceasefire in Gaza before Donald Trump takes office in January.

Elsewhere, tensions between Russia and Ukraine remain high after Russia carried out a series of debilitating attacks on Ukraine, targeting the country's power grid.

Source: Investing.com