Oil prices fall on European debt jitters
Oil prices tracked movements in global stock markets today.
Crude oil futures in New York and London were on the rise this morning as European equities advanced, recovering from yesterday's sell-off triggered by speculation that France may lose its top notch AAA credit rating.
Traders were nervous over the exposure of the French banking sector to European debt, particularly to Greek bonds. The speculation prompted agencies Moody's, Standard & Poor's and Fitch to reaffirm France's AAA rating to calm the markets.
In addition to the early relief rally in Europe, oil prices enjoyed support from a decline in the US dollar following the Federal Reserve's pledge to keep interest rates at near zero until at least mid-2013.
However, equity and commodity markets switched back to selling mode later in today's session under pressure from persisting worries over the strength of the US economic recovery and Europe's fiscal problems.
US light, sweet crude for September delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), fell 47 cents to US$82.42/barrel in morning trade.
September Brent crude dropped 86 cents to US$105.77/barrel on the ICE Exchange this afternoon.
Today's top risers in the oil and gas sector were:
BowLeven (LON:BLVN), up 13 percent at 131.5 pence at midday
Nautical Petroleum (LON:NPE), up 12.5 percent at 268.75 pence
Forum Energy (LON:FEP), up 11.5 percent at 44 pence
Coastal Energy Company (LON:CEO), up 11 percent at 604.92 pence
Petro Matad (LON:MATD), up 10.5 percent at 87.9 pence
The top fallers were:
TXO (LON:TXO), down 19 percent at 0.465 pence at midday
Leed Petroleum (LON:LDP), down 9 percent at 0.082 pence
Petrel Resources (LON:PET), down 8.5 percent at 9.85 pence
Pantheon Resources (LON:PANR), down 6.5 percent at 14.75 pence
Sirius Petroleum (LON:SRSP), down 5.5 percent at 2.6 pence
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