Commodities : Energy Futures Advance

Energy futures prices advanced sharply Friday on word that most OPEC members had agreed in principle to oil production cuts.

West Texas Intermediate crude oil was up 60 cents a barrel, heating oil gained 1.18 cents a gallon and unleaded gasoline advanced .93 cent a gallon.

On some other markets, livestock and meat futures mostly were lower, as were corn and soybeans.

While oil futures were up sharply they failed to hit daily trading limits, reflecting traders’ reservations over the ultimate success of the Organization of Petroleum Exporting Countries in cutting production in order to lift prices to about $18 a barrel.

Nonetheless, “the market was extremely strong,” said Richard Marose, an analyst in Chicago with Geldermann Inc. It was “very impressed with the amount of work accomplished in such a short period of time.”

Reports from Geneva had a majority of OPEC members agreeing to first-quarter production cuts of 5% to 10%. But it was unclear whether all of the 13 cartel nations would have to take a cut to reach the goal.