WTI drops 16 cents per barrel during session

Crude oil prices were mixed at early afternoon in New York on Monday. Brent crude February contracts, which expire at the end of the session on Tuesday, added 11 cents to $53.06 per barrel but February delivery West Texas Intermediate crude dropped 16 cents to $52.83 per barrel. There was no floor trading on the New York Mercantile Exchange for the day in honor of the holiday celebrating the birthday of Martin Luther King Jr., but electronic trade continued.

Despite speculation that the Organization of Petroleum Exporting Countries could call another emergency meeting to discuss another production cut in hopes of raising prices, Kuwait’s oil minister was quoted as saying that he would prefer to wait until the 500,000 barrel per day cutback slated to go into effect on February 1 in order to see what impact that cut has on prices.

Some analysts said that oil prices would rise if further cuts were made, but others point out that earlier cuts have not been successful in keeping prices up, mainly because there are those who do not believe that the cuts are being enforced.

Prices were up somewhat earlier in the session after there was a fire at the Richmond, California refinery owned by Chevron; however, the fire was reported to have been controlled quickly.