Oil Futures Prices Rally

Oil futures prices rallied in surprisingly active pre-holiday trading Wednesday on the New York Mercantile Exchange.

In other markets, grains and soybeans mostly rose as did cattle futures, but pork prices fell. Precious metals also advanced.

In the oil markets, the price of West Texas Intermediate crude oil gained nearly 50 cents a barrel. Crude oil settled 36 cents to 49 cents higher, with the contract for delivery in February at $17.27 a barrel; heating oil was 0.50 cent to 0.68 cent higher, with February at 48.70 cents a gallon, and unleaded gasoline was 0.35 cent to 0.55 cent higher, with February at 47.25 cents a gallon.

“It was an affirmation that the majority of people are taking the (OPEC) ageement as positive for the market,” said Peter Beutel, an analyst in New York with Elders Futures Inc.

The Organization of Petroleum Exporting Countries last weekend agreed to production cuts it hopes will raise oil prices to about $18 a barrel, but the futures market has been reluctant to fully trust the cartel’s ability to support the pact.

“There are still skeptics out there,” Beutel said, “But today’s action (indicates a belief) that OPEC will be able to engineer the production cuts and strengthen the market.”