Oil Futures Rise After OPEC Pauses Output Increase


   
Barani Krishnan
DTN Refined Fuels Market Reporter

   SECAUCUS, NJ (DTN) -- Benchmark crude oil contracts soared more than 1% at 
the start of December trading Monday (12/1) as the Organization of Petroleum 
Exporting Countries and its partners, known as OPEC+, reaffirmed their pledge 
to halt production hikes in the first quarter of next year.

   OPEC+ originally committed in November to halt output hikes in the first 
quarter of next year and reaffirmed the pledge at a weekend meeting.

   "By maintaining flexibility rather than committing to a revised production 
strategy, OPEC+ retains the ability to respond swiftly should circumstances 
deteriorate or geopolitical developments unexpectedly constrain supply," said 
Phil Flynn, energy analyst at the Price Futures Group.

   Adding to the bullish sentiment was a partial halt in flows on the Caspian 
Pipeline Consortium carrying Kazakh oil to Russia's Black Sea coast, following 
damage on one of its three moorings from a Ukraine attack.

   It was the first such attack on the pipeline averaging 1.6 million bpd and 
although loadings resumed late Sunday (11/30) at one of the undamaged moorings, 
a separate Ukraine attack on a Russian refinery kept the market on the edge.  

   The NYMEX WTI contract for January delivery settled up $0.77, or 1.3%, at 
$59.32 bbl.  ICE Brent for February delivery rose by $0.84, or 1.4%, to $63.22 
bbl.

   January RBOB gasoline futures advanced $0.04888 to $1.8703 gallon, while 
front-month ULSD futures rose $0.0364 to $2.3395 gallon.

   The U.S. Dollar Index softened by 0.053 points to 99.355 against a basket of 
foreign currencies.




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