• The global oil market is fluctuating due to tensions between Israel and Hezbollah, affecting investor decisions on OPEC+ output policy.
• Brent crude futures fell slightly, while U.S. West Texas Intermediate crude futures rose, amidst accusations of ceasefire violations.
• Despite Middle East conflicts, oil supplies remain largely unaffected, but Russia's attack on Ukrainian energy facilities could impact Russian oil supply.
• Asian and Indian markets are also affected, with stocks fluctuating due to geopolitical tensions and policy decisions by major oil-producing countries.

The global oil market is currently experiencing a mixed trend due to the escalating tensions between Israel and Hezbollah. The two parties have been trading accusations of ceasefire violations, leading to a potential renewal of supply risk.

This situation has left investors in a state of uncertainty, awaiting a decision on the output policy of OPEC+, the Organization of the Petroleum Exporting Countries and its allies, including Russia.

Brent crude futures fell by 7 cents, or 0.1%, to $73.21 a barrel, while U.S. West Texas Intermediate crude futures were at $69.10, up 38 cents, or 0.55%, compared to Wednesday's closing price. The trading volume remained thin due to the Thanksgiving holiday that shut U.S. financial markets.

The ceasefire between Israel and the Lebanese armed group Hezbollah, which came into effect the day before, initially seemed to alleviate the potential for supply disruption from a broader conflict. However, the accusations of violations have reintroduced a risk premium for oil.

Global Impact and Market Reactions

Despite the ongoing conflicts between Israel and Hezbollah in Lebanon, and Hamas in Gaza, oil supplies from the Middle East have remained largely unaffected. In a related development, Russia struck Ukrainian energy facilities for the second time this month. Analysts from ANZ have warned that this attack could provoke retaliation that might affect Russian oil supply.

OPEC+ has postponed its next policy meeting to Dec. 5 from Dec. 1 to avoid a conflict with another event. The meeting is expected to further extend OPEC+ production cuts. This decision comes at a time when Iran has informed a U.N. nuclear watchdog of its plans to install more than 6,000 additional uranium-enriching centrifuges at its enrichment plants.

Analysts at Goldman Sachs have predicted that Iranian supply could drop by as much as 1 million barrels per day in the first half of next year if Western powers tighten sanctions enforcement on its crude oil output.

Asian and Indian Markets Amid Global Unrest

In the Asian market, stocks in mainland China gained as food, beverage, and dining stocks advanced after officials held a meeting to boost consumption. However, shares in Australia and Japan fell, while South Korea 's declined most in the region as a surprise interest-rate cut by the central bank shifted investor focus to slowing economic growth.

The yen rose to the highest level in more than a month against the greenback, strengthening past 150. The dollar slipped against major currencies, with an index of greenback strength headed for its first weekly decline in two months. Treasury yields fell as cash trading in Asia resumed.

In India, benchmark equity indices opened higher on Friday after their steepest drop in nearly two months in the previous session. The BSE Sensex was trading 600 points, or 0.82%, higher at 79,691. The Nifty50 was up 194.70 points, or 0.81%, trading at 24,108 around 10:35 am.