Oil Futures Prices Slump

Oil futures prices slumped Thursday on a discordant note from the meeting of the Organization of Petroleum Exporting Countries.

The futures market was sent into a sharp selloff when Kuwait’s oil minister insisted on higher production quotas and said it was highly unlikely the cartel would extend its temporary accord.

In some other markets, precious metals were sharply lower with platinum down the limit allowed for daily trading; livestock and meat futures made substantial gains.

Early in the day, reports out of Geneva indicated that, despite differences between OPEC ministers, a renewal of the temporary production agreement appeared likely.

But then in mid-session, Kuwait’s insistance on an increase in its 900,000 million barrels-a-day quota served as a reminder that an agreement on controls was not assured. In addition, traders “were looking for a spot to take a little profit,” said Ed Dellamonte, an analyst for Prudential-Bache Securities. “Prices are a little high, considering the supply-demand situation.”

The remarks by the Kuwaiti minister also helped send gold futures down more than $9 an ounce, said Bill O’Neill, research director for Elders Futures Inc.