U.S. crude stockpiles fell more than expected this week
Analysts cite outlook for looser 2025 supply and demand balance
OPEC shifts meeting to Dec. 5, could further delay output hike

LONDON, Nov 29 Reuters Oil prices fell on Friday, heading for a weekly drop of more than 3, pressured by easing concern over supply risks from the IsraelHezbollah conflict and the prospect of increased supply in 2025 even as OPEC is expected to extend output cuts.

Four Israeli tanks have entered the western side of the Lebanese border village of Khiyam, Lebanon39;s official news agency said on Friday, though both sides have made accusations of ceasefire violations. Nonetheless, the ceasefire that took effect on Wednesday has reduced oil39;s risk premium, sending prices lower.

Brent crude was down 45 cents, or 0.6, at 72.83 a barrel by 1214 GMT. U.S. West Texas Intermediate crude futures were at 68.68, down 12 cents, or 0.2, from the last close before Thursday39;s Thanksgiving holiday. Brent is down 3 over the week while WTI has lost 3.7.

The Middle East conflict has not disrupted supply, which is expected to be more ample in 2025. The International Energy Agency sees the prospect of more than 1 million barrels per day bpd of excess supply equal to more than 1 of global output.

The updated snapshot insinuates that next year promises to be looser than the current one and oil prices are to average below the 2024 level, said Tamas Varga of oil broker PVM.

The OPEC group comprising the…