In this Feb. 26, 2011, file photo, an employee works at a refinery inside the Brega oil complex, in Brega, eastern Libya. OPEC produces one-third of the world’s oil and, in theory, at least, can affect global oil prices depending on how much oil it decides to sell.Hussein Malla/The Associated Press
The Toronto stock market closed lower, pulled down in part by energy stocks ahead of a key OPEC meeting.
The S&P/TSX composite index declined 35.24 points to 15,038.41. The energy sector fell more than two per cent as oil declined 40 cents to a four-year low of US$73.69 a barrel.
Traders hope the Organization of Petroleum Exporting Countries will come to an agreement during Thursday's meeting to cut production in order to support prices that are down about 30 per cent from mid-summer because of a higher American dollar, lower demand and especially rising supplies.
However, there is plenty of doubt about whether the cartel will come to such a deal. Saudi Arabia's oil minister believes the crude market will "stabilize itself."
Some analysts suggest it doesn't matter what OPEC decides.
"If there is a cut, it won't matter, they'll cheat — they cheat all the time," said John Stephenson, president and CEO of Stephenson and Co.
"They all cheat for the same basic reason, which is that you can and because it's in your interest to cheat because your share of profits is directly proportional to what you pump. So why not pump the most and make it someone else's problem?"
Meanwhile, the Canadian dollar climbed 0.13 of a cent to 89 cents (U.S.).
American markets were higher ahead of the U.S. Thanksgiving holiday on Thursday when they will be closed. The Dow Jones industrials was up 12.81 points at 17,827.75, the Nasdaq gained 29.07 points to 4,787.32 and the S&P 500 index edged up 5.8 points to 2,072.83.
Elsewhere on the TSX, the base metals sector declined 1.4 per cent as March copper fell two cents to $2.96 (U.S.) a pound.
February bullion faded 30 cents to $1,197.50 an ounce and the gold sector fell about two per cent.
Gainers were led by telecoms and financials.
In U.S. economic news, durable goods orders put in a much better than expected showing in October, rising by 0.4 per cent versus an expected 0.6 per cent drop.
The U.S. Commerce Department also said consumer spending rose 0.2 per cent last month. Consumer spending is closely watched because it accounts for 70 per cent of American economic activity.
Other data showed that U.S. new home sales edged up 0.7 per cent in October to the fastest pace since May.
In earnings news, farm equipment maker Deere & Co. says its sales and profits will keep falling in its new fiscal year as the sector remains weak. Deere also said it earned $649.2-million, or $1.83 per share, in the fourth quarter on $8.97-billion in revenue. Analysts had expected a profit of $1.57 per share and $7.73-billion in revenue. Its shares were down almost one per cent.