WSJ:OIL FUTURES: Crude Trades In Narrow Range Ahead of EU Summit
By Jenny Gross
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Crude oil prices were mixed in a narrow range Friday, as investors were hesitant to take a stance ahead of a weekend summit of European leaders on the region's debt crisis, analysts said.
At 0957 GMT, the front-month December Brent contract on London's ICE futures exchange was down 24 cents, or 0.2%, at $109.52 a barrel.
The front-month December contract on the New York Mercantile Exchange was trading up 25 cents, or 0.3%, at $86.32 per barrel.
Brent crude traded slightly lower, while Nymex crude, the U.S. benchmark, edged higher.
Euro zone leaders will meet at a summit in Brussels Sunday to discuss the euro zone debt crisis. French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a statement Thursday saying no decisions would be taken by EU leaders Sunday, but that they would come up with a comprehensive plan at a second EU summit to be held by Wednesday at the latest.
"It (prices) will be range bound until anything comes out on Wednesday," said Andy Riddell, head of retail derivatives at London Capital Group. "It hasn't got much of a mind of its own and is trading the macro situation rather than the individual product."
Riddell said he expected Brent crude to trade within $107 to $114 until Wednesday.
Edward Meir, a senior analyst at MF Global, said in a note not to sell off oil ahead of the European debt talks this weekend. Even with all the back and forth, some sort of agreement will probably emerge, causing market to spike, he said.
Reports of the death of former Libyan leader Muammar Gadhafi didn't weigh on prices, as news from the euro zone dominated markets, analysts said.
"Muammar Gadhafi is no longer of this world. What is still of this world regrettably is the euro zone debacle," said a note by PVM.
At 0957 GMT, the ICE's gasoil contract for November delivery was up $11.00, or 1.2%, at $947.00 per metric ton, while Nymex gasoline for November delivery was down 155 points, or 0.6%, at $2.6600 per gallon.
-By Jenny Gross, Dow Jones Newswires; 4420-7842-9239; jenny.gross@dowjones.com
