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Dec 9, 2016

Oil Futures on MarketWatch - December 9, 2016: Oil Futures Jump Ahead of Non-OPEC Weekend Meeting by Sara Sjolin, Dan Strumpf
Sara Sjolin, Dan Strumpf
Oil futures moved higher again on Friday as traders looked ahead to a key weekend meeting between OPEC and non-OPEC countries about whether or not to cut oil production.

Crude oil for January delivery CLF7, +0.90%  jumped 46 cents, or 0.9%, to $51.30 a barrel, adding to a 2.2% gain from Thursday.
February Brent crude LCOG7, +0.67%  gained 27 cents, or 0.5%, to $54.16.
The moves come as traders eagerly wait for the outcome of summit between members of the Organization of the Petroleum Exporting Countries and oil producers outside the cartel, which is scheduled to take place in Vienna on Saturday. OPEC is hoping to get other big producers to join it in cutting output, in an effort to stabilize the struggling oil market.
Read: OPEC oil output up a sixth straight month to reach a record in November
The group last week agreed to cut output by 1.2 million barrels a day, equivalent to about 1% of global production, starting next month. Non-OPEC members are hoped to slash output by another 600,000 barrels a day, with Russia expected to take on half of that burden.
However, as the summit draws closer, fears are creeping in some nations outside the cartel won’t commit to limiting production. Only five of 14 non-OPEC countries have so far agreed to show up for the Saturday talks, according to Reuters. Azerbaijan, Kazakhstan, Oman, Mexico and Russia have accepted the invitation for the meeting, the report said.
“If non-OPEC countries decided to take advantage of OPEC cuts to expand their own market shares, this would seriously undermine discipline among the oil cartel members. In the short term, though, all involved will be trying to support expectations of tighter supply,” analysts at Commerzbank said.
Read: OPEC deal may already be running into trouble, says this chart
Many analysts believe that oil prices are likely to slowly trend higher into the coming year, now that OPEC has reasserted its willingness to nudge the market with production cuts. For years, the cartle has sat on the sidelines as production from U.S. shale drillers rose, sending prices dramatically lower and bringing an end to an era of high oil prices.
In other energy products on Friday, Nymex reformulated gasoline blendstock for January RBF7, +0.39%  — the benchmark gasoline contract — rose 0.4% to $1.51 a gallon.
ICE gasoil for December changed hands at $471.25 a metric ton, up $4.50 from Thursday’s settlement.
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