Ceasefire between Israel and Hezbollah came into effect on Wednesday
OPEC considering delaying oil output increase, sources say
Analysts see oil prices as undervalued

SINGAPORE, Nov 27 Reuters Oil prices edged up on Wednesday, with markets assessing the potential impact of a ceasefire deal between Israel and Hezbollah and Sunday39;s OPEC meeting, in which the group could delay a planned increase to oil output.

Brent crude futures rose 29 cents, or 0.4, to 73.10 a barrel by 0750 GMT and U.S. West Texas Intermediate crude was up 26 cents, or 0.4, at 69.03.

Both benchmarks settled lower on Tuesday after Israel agreed to a ceasefire deal with Lebanon39;s Hezbollah.

The ceasefire between Israel and Iranbacked Hezbollah came into effect on Wednesday after both sides accepted the agreement brokered by the U.S. and France.

The accord cleared the way for an end to a conflict across the IsraeliLebanese border, which has killed thousands of people since it was ignited by the Gaza war last year.

Market participants are assessing whether the ceasefire will be observed, said Hiroyuki Kikukawa, president of NS Trading, part of Nissan Securities.

We expect WTI to trade within the range of 6570 a barrel, factoring in weather conditions during the Northern Hemisphere39;s winter, a potential increase in shale oil and gas production under the incoming Donald Trump administration in the U.S. and demand trends in China.

Heads of commodities research at Goldman Sachs and Morgan…