Commodities : Oil Futures Prices Advance

The oil futures market strengthened Monday on what analysts said was a report that the Soviet Union is taking steps to peg the price of crude at a higher, fixed level.

On some other markets, orange juice futures plunged the limit allowed for daily trading, Treasury bonds were sharply lower and livestock, meat, grain and soybean prices retreated.

West Texas Intermediate crude, heating oil and gasoline all registered solid increases at the New York Mercantile Exchange.

“The market was pretty firm . . . as traders continued their optimistic assessment of OPEC’s chances of holding their (production) agreement together at least for the next couple months,” said Andrew Lebow, an analyst in New York with Shearson Lehman Bros. But particularly important for Monday’s market, he said, “was news that the Soviet Union was going to stop netback sales and charge $18.30 for Urals crude.” Netback sales, which have tended to undercut the market, are made under an arrangement in which the price of crude is ultimately determined by what the buyer gets for the refined product.

Russia exports to the Mediterranean area and competes with members of the Organization of Petroleum Exporting Countries.