By Dan Strumpf
Oil futures rose in early Asia trading, snapping a three-session losing streak, amid ongoing efforts to shore up a proposed production cut by members of the Organization of the Petroleum Exporting Countries.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.95 a barrel, up 63 cents in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose 59 cents to $45.02 a barrel.
Tuesday's rally marks a reversal from a weekslong decline in crude prices. Traders have been positioning ahead of an OPEC meeting scheduled for Nov. 30, where members are set to discuss a proposed production cut in a bid to shore up oil prices.
Market watchers remain skeptical that the cartel will come to an agreement over a proposed cut of between 32.5 million and 33 million barrels a day. Bloomberg reported that several OPEC members were engaged in a last-minute push to overcome divisions between the cartel's biggest producers, which some analysts said contributed to Tuesday's advance.
"There are some talks coming from OPEC that members are trying at least to heal the diplomatic divide among individual members," said Peter Lee, an oil analyst at BMI Research. "This is what traders will be looking at--any small sign coming from [OPEC] will be reflected in the price."
In contrast to other commodities and risky assets, oil prices have been broadly retreating despite the last week's election victory by Donald Trump. Analysts attribute the dynamic to concern over the scale of the global crude oversupply. In the U.S., the number of rigs drilling in the ground rose 2% in the week ended Nov. 4, the U.S. Energy Information Administration said last week.
Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--rose 105 points to $1.2883 a gallon, while December diesel traded at $1.3974, 119 points higher.
ICE gasoil for December changed hands at $408 a metric ton, up $6.25 from Monday's settlement.
Write to Dan Strumpf at email@example.com
(END) Dow Jones Newswires
November 14, 2016 22:11 ET (03:11 GMT)
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