Energy shares led market gainers as oil futures rose, beginning 2022 on a positive note.
Traders built on the strongest annual rise for crude in 12 years, a day ahead of an expected decision on crude production levels from major oil producers. The Organization of the Petroleum Exporting Countries and their allies, together known as OPEC+, will hold a meeting Tuesday via videoconference to decide on output levels in February.
At the meeting in December, the group left its current agreement in place to boost monthly overall production by 400,000 barrels per day for the month of January. It appears OPEC is unlikely to "change from the script," and will raise output by its expected 400,000 barrels a day, said Phil Flynn, senior market analyst at The Price Futures Group, in a note.
Meanwhile, OPEC said that Haitham Al-Ghais of Kuwait will become its secretary general on Aug. 1 to serve a three-year term, taking over for Nigeria's Mohammad Barkindo, who has been OPEC's secretary general since 2016.
Natural gas prices finished higher for a second straight session as the market began 2022 the same way it ended 2021. The market has now gained more than 7% over the past two sessions as very cold weather creates the doubly-bullish result of increased demand and reduced supply as some regional producers are forced to shut-in production temporarily to prevent equipment damage.
Write to Amy Pessetto at amy.pessetto@dowjones.com
(END) Dow Jones Newswires
01-03-22 1703ET
