08:40 AM EST, 11/22/2024 (MT Newswires) -- Oil traded lower early on Friday, giving back some of the day prior gains that came on a higher geopolitical risk premium that pushed prices up 1.8%.

West Texas Intermediate crude oil for January delivery was last seen down US$0.57 to US$69.53 per barrel, while January Brent crude, the global benchmark, was down US$0.58 to US$73.65.

Prices jumped on Thursday as Ukraine made its first attack on Russia using foreign missiles and Russia retaliated by firing a newly developed hypersonic ballistic missile at the city of Dnipro amid further nuclear threats from the country.

"After successive days of permission and use of American and British hardware, Russia ups the ante by shooting a ballistic missile which is the first time such a weapon has been used in the 1000-day old war. President Putin was at pains to point out that the use of the newly developed missile was direct retaliation for the use of Western weapons and warned that the involvement of both the UK and the US risks expanding the war into a global conflict. Oil prices under such circumstances and rhetoric have little choice other than to rally," PVM Oil Associates noted.

Still, the commodity remains stuck within a narrow trading range as supply remains abundant and demand from China is sluggish. OPEC+ will meet on Dec.1 to decide whether to go ahead with monthly supply additions of 180,000-barrels per day beginning in January to unwind 2.2-million bpd of voluntary production cuts, though reports say the group is ready to postpone the move to support prices.