Brent, US crude futures flat on light US Thanksgiving trade

West Texas Intermediate (WTI) crude was up 33 cents at $42.08. The world’s largest oil exporter has started shipping crude to traditional Russian markets.

Traders and investors also covered short positions before US markets close for Thursday’s Thanksgiving holiday, analysts said.

Although geopolitical tensions, after Turkey shot down a Russian jet along the Syrian border, pushed prices up this week, there is little indication so far the turmoil in the Middle East is affecting oil supply.

Data from the US Department of Energy released yesterday showed the country’s commercial crude supplies rose 1.0 million barrels for the week ended November 20.

It settled up 5 cents, or 0.11 percent, at $46.17 a barrel the day before, after falling more than $1 to a session low $45.03.

Brent North Sea crude for January, the global benchmark for oil, was down 58 cents at $US44.88 a barrel in late trade in London. A preliminary inventory report by industry group American Petroleum Institute had anticipated a 2.6-million barrel rise while a Reuters poll of analysts forecast a 1.2 million build.

World oil prices rose this week on concerns that heightened geopolitical tensions could disrupt Middle East supplies despite a market awash with crude.

“This clearly has not been enough to rebalance the US market, let alone the global one”, said Timothy Evans, a Citi Futures energy analyst.

A gain in the dollar, which rose to an eight month high against a basket of currencies .DXY , also weighed on prices as oil, priced in the US unit, became less affordable to holders of other currencies.

Russian Federation had yesterday accused Turkey of a “planned provocation” and a rescued pilot of the targeted jet said that no warning had been given. Libya’s National Oil Corp. said it’s making progress to resume pumping crude after more than a year from two fields including Sharara, the OPEC member’s biggest.

Oil prices fell on Thursday amid signs of robust USA production despite data showing a lower-than-expected increase in US oil inventories and a decline in the number of working oil-rigs in the country.

Traders were turning their attention to next week´s OPEC output meeting to see if the oil producers´ cartel will slash high output levels.