Oil prices remained stable on Thursday following an unexpected increase in U.S. gasoline inventories and the postponement of the OPEC+ meeting regarding output policy from December 1 to December 5.

Brent crude futures saw a slight increase of 8 cents, reaching $72.91 a barrel by 0955 GMT, while U.S. West Texas Intermediate crude futures rose by 7 cents to $68.79.

Trading activity is anticipated to be subdued due to the U.S. Thanksgiving holiday.

OPEC+, which includes the Organization of the Petroleum Exporting Countries and its allies such as Russia, rescheduled its weekend meeting to avoid clashing with another significant event, as stated by the producer group.

This coalition accounts for approximately half of the global oil supply but has implemented production cuts to bolster prices amid a prolonged period of weak demand. Consequently, OPEC+ has frequently postponed plans to reduce these cuts.

Sources within OPEC+ have indicated that discussions on December 5 will likely address another delay in the planned oil output increases set to commence in January.

According to Suvro Sarkar from DBS Bank, the market has largely anticipated this further deferment in oil prices. "The key question remains whether this will be a one-month delay, three months, or potentially longer."

U.S. gasoline inventories increased by 3.3 million barrels for the week ending November 22, as reported by the U.S. Energy Information Administration on Wednesday, which contradicted expectations of a slight decrease in fuel stocks ahead of the holiday travel season.

The slowdown in fuel demand growth from major consumers like China and the United States has significantly impacted oil prices this year.

Both Brent and WTI have experienced a decline of over 3% this week.

Additionally, a ceasefire agreement between Israel and Lebanon's Hezbollah, which commenced on Wednesday, has alleviated concerns regarding potential disruptions to oil supplies from the Middle East, contributing to downward pressure on prices.

Market participants remain uncertain about the duration of the ceasefire, with analysts at ANZ Bank noting that the overall geopolitical landscape for oil remains unclear.

Oil prices are currently undervalued in light of a market deficit, as cautioned by the heads of commodities research at Goldman Sachs and Morgan Stanley in recent statements. They also highlighted the potential risks to Iranian supply due to sanctions that may be implemented under U.S. President-elect Donald Trump. -Reuters