Spot shipments of crude by rail have all but vanished. Rail car lease rates have slumped to half what they were a year ago and oil-by-rail traffic has dropped 17 percent in the first few weeks of 2016, according to the latest data from the Association of American Railroads. [L2N1541M9] Rail car traffic at the Eddystone rail facility outside Philadelphia, a joint venture between a local group and Enbridge [ENBR.UL], is expected to be the lowest in years, according to two sources familiar with that facility’s operations. The terminal typically unloads about 27 unit trains a month, or roughly 65,000 barrels per day (bpd). But its main customer, the refining subsidiary of Delta Airlines Inc., has turned to oil from Gabon and Nigeria, the sources said.
Futures jumped as much as 8.8 percent percent in London Wednesday. OPEC is very close to a deal that would remove 1.4 million barrels a day of collective production, a delegate to a ministerial meeting underway in Vienna said. An agreement would include an additional 600,000 barrels a day of cuts from non-OPEC suppliers, the delegate said. Russia, the biggest producer outside the bloc, has said that if OPEC agrees individual country quotas, it is ready to participate, including possibly by reducing its output, a person familiar with Russian thinking said.
Saudi Arabia Energy Minister Khalid Al-Falih said “there are good chances” for a deal and he is hoping non-OPEC producers will cut production. Russia, the biggest supplier outside the bloc, had previously said it was only prepared to freeze supply at current near-record levels.
Brent for January settlement, which expires Wednesday, gained as much as $4.07 to $50.45 a barrel on the London-based ICE Futures Europe exchange. It traded at $50.08 at 12:24 p.m. local time. The contract dropped $1.86 to $46.38 on Tuesday, the lowest close since Nov. 14. The global benchmark traded at a $1.30 premium to WTI for the same month.
West Texas Intermediate for January delivery rose as much as $3.89 to $49.12 a barrel on the New York Mercantile Exchange. The contract dropped $1.85 to $45.23 on Tuesday, the lowest close since Nov. 14.
more at: https://www.bloomberg.com/news/articles/2016-11-29/oil-trades-near-2-week-low-as-discord-threatens-opec-supply-deal