By Dan Strumpf
Oil futures tilted between gains and losses in Asia trading Monday, as traders continued to cast doubts on the odds of a production cut later this month by the Organization of the Petroleum Exporting Countries.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in December traded at $43.38 a barrel, down three cents or less than 0.1%, in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose three cents to $44.78 a barrel.
Crude prices have been in retreat for weeks now in the lead-up to the Nov. 30 OPEC meeting, as doubts have intensified over the cartel's ability to strike a deal. At the same time, some analysts have said that Donald Trump's victory in last week's U.S. election makes a deal even less likely given the possibility of a revitalized domestic energy industry.
"The new dynamic of a highly favorable legislative and most likely fiscal environment for the U.S. upstream and midstream is a parameter that OPEC members would have not have factored in when the proposed cut was introduced," analysts at BMI Research wrote in a note to clients. "We believe they will take a 'wait-and-see' approach during this meeting until the U.S. energy policies become clearer in 2017."
OPEC members had proposed capping output to between 32.5 million and 33 million barrels a day in their meeting in Algeria late September, down from a record 33.83 million pumped in October.
Separately, data from China's statistical agency released Monday showed another fall in Chinese crude production in October. The country produced 16.05 million tons, or about 3.8 million barrels a day, down 11% from a year ago. So far this year, China'soil output has fallen 6.7%, due in large part to lower investment in aging fields.
In refined fuel markets, Nymex reformulated gasoline blendstock for December--the benchmark gasoline contract--fell 53 points to $1.3000 a gallon, while December diesel traded at $1.3971, 41 points lower.
ICE gasoil for December changed hands at $408.75 a metric ton, up $2.00 from Friday's settlement.
Write to Dan Strumpf at email@example.com
(END) Dow Jones Newswires
November 13, 2016 22:17 ET (03:17 GMT)
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