Volume 94 / Number 227 / November 23, 2016 / Prices effective November 22, 2016
Crude futures nearly unchanged as prospects for OPEC deal waver
New York—Oil futures were mixed Tuesday as prices fluctuated sharply on speculation whether OPEC members reached consensus on the terms for a final production agreement that would limit the group’s output.
Optimism that a two-day technical meeting would conclude Tuesday with a deal in hand led oil prices higher in early trading, but prices slipped on reports that the roles of Iraq and Iran remained unsolved.NYMEX January crude settled 21 cents lower at $48.03/b after trading as high as $49.20/b in electronic trading. ICE January Brent settled 22 cents higher at $49.12/b off an intraday high of $49.96/b.Refined product futures followed ICE Brent. NYMEX December ULSD settled up 18 points at $1.5263/gal. NYMEX December RBOB settled 1.33 cents higher at $1.4098/gal.Oil futures have been sensitive to OPEC-related headlines ahead of the bloc’s November 30 ministerial meeting, when a final vote is supposed to take place after having reached a preliminary deal in late September.“Certainly the bulls have the advantage with what OPEC members will likely say until the November 30 meeting,”said Tony Headrick, analyst at CHS Hedging.“I don’t think they will come out with pessimistic overtones, which would defeat the purpose of what they’re trying to accomplish – higher prices,” he said.Front-month NYMEX crude sunk as low as $42.20/b on November 14, but then started climbing on hopes that OPEC will deliver a deal, as well as short-covering, analysts said.That price rebound put front-month NYMEX crude on