Shares of energy producers ticked down alongside oil futures, amid doubts about the sustainability of the recent oil rally. While oil prices rose sharply in the fall because of renewed faith in the ability of the Organization of the Petroleum Exporting Countries to extend a production cap deal, some see the gains as overdone. "We see reasons to believe price gains will moderate even with an OPEC extension," said Richard Turnill, global chief investment strategist at money manager BlackRock, in a note to clients. "Major global oil agencies predict non-OPEC supply will rise next year, pressuring oil prices. Increased hedging activity in the futures market by U.S. shale producers may signal an intent to ramp up production, we believe. A clearing up of logistical bottlenecks caused by recent hurricanes should also boost U.S. oil exports, increasing global supply." Separately, a glut of natural gas -- often a by-product of oil wells in shale rock formations -- could slow drilling activity in West Texas, The Wall Street Journal reported. Nebraska officials on Monday approved the Keystone XL pipeline, removing the last major regulatory hurdle standing in the way of the long-delayed project.
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-Rob Curran, firstname.lastname@example.org
(END) Dow Jones Newswires
November 20, 2017 16:19 ET (21:19 GMT)