WSJ:Crude Oil Futures Slightly Higher; OPEC Meeting in Focus
By Jacob Gronholt-Pedersen
Crude-oil futures fared slightly better in Asian trading Wednesday after OPEC said it reduced oil supply in November.
Focus is on the cartel's meeting to discuss production and weekly U.S. oil inventory data, both due later Wednesday.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in January traded at $85.82 a barrel at 0641 GMT, up $0.03 in the Globex electronic session. January Brent crude on London's ICE Futures exchange rose $0.29 to $108.30 a barrel.
There is generally stronger investor sentiment, which pushed crude prices higher on Tuesday following declines in the previous four sessions.
At a meeting in Geneva Wednesday, members of the Organization of the Petroleum Exporting Countries are widely expected to leave production quotas unchanged. On Tuesday, several ministers from the group indicated they are likely to agree to maintain the collective oil-production ceiling of 30 million barrels a day.
The group said Tuesday it pumped 30.8 million barrels a day in November--more than the 29.7 million barrels it forecasts its customers to need next year. That is down 208,000 barrels a day compared with the previous month, based on figures from secondary sources.
OPEC's 12 member states--which together produce around a third of the world's oil supply--will try to select a new secretary general Wednesday. Members remain divided over the choice.
Weekly U.S. oil inventory data due later Wednesday is expected to show crude oil stockpiles fell 2.1 million barrels and gasoline stocks rose 1.8 million barrels, according to a Dow Jones Newswires survey of analysts.
The American Petroleum Institute, an industry group, estimated Tuesday that crude inventories last week rose by 4.3 million barrels. The data from the U.S. Energy Information Administration is due at 1530 GMT.
The monthly report from the International Energy Agency, which represents major energy-consuming nations, is also due later Wednesday. Last month's report sparked concerns over demand, after the IEA lowered its forecast for global oil demand through the end of this year and said economic weakness could pressure demand next year.
Market participants will also watch the Federal Open Market Committee policy meeting later Wednesday to see if the U.S. Federal Reserve will maintain its bond-buying program.
The "reaction could turn more positive if a new program is announced, particularly with markets pricing in downside stemming from the U.S. fiscal debate," ANZ analysts said in a note.
Nymex reformulated gasoline blendstock for January--the benchmark gasoline contract--rose 120 points to $2.6225 a gallon, while January heating oil traded at $2.9320, 50 points higher.
ICE gasoil for December changed hands at $906.25 a metric ton, up $2.75 from Tuesday's settlement.
Write to Jacob Gronholt-Pedersen at jacob.pedersen@dowjones.com
