Energy Up Amid OPEC Optimism -- Energy Roundup

Features Dow Jones Newswires

Shares of energy producers rose as traders awaited reports from an OPEC meeting in Vienna.

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Oil futures and equities first ran up on optimism about the meeting before weakening in recent sessions on fears that any extension of a production-cap agreement would be limited, according to one brokerage. "Outcome uncertainty has grown in recent weeks resulting in sector weakness," said analysts at brokerage Morgan Stanley, in a note to clients. "Given constructive oil supply/demand outlook into 2018, we believe a 3-month extension would drive modest near-term weakness while a 9-month extension supports a material rally into year-end with other likely outcomes in between."

Oil futures were also buoyed by reports that North Korea had test-fired a ballistic missile, ending a two-month hiatus and ratcheting up the risk of global warfare once more.

Royal Dutch Shell said it would begin paying its dividend only in cash, doing away with a share payment, or "scrip," in another sign that big oil companies are putting a historic energy-market downturn behind them.

-Rob Curran, rob.curran@dowjones.com

(END) Dow Jones Newswires

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November 28, 2017 16:52 ET (21:52 GMT)