Shares of energy producers rose as traders awaited reports from an OPEC meeting in Vienna.
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."
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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, firstname.lastname@example.org
(END) Dow Jones Newswires
November 28, 2017 16:52 ET (21:52 GMT)