US crude rises on Chinese data, Brent falls on profit taking
Oil prices were mixed this afternoon as US benchmark crude was on the rise, London Brent, which has greater exposure to the European debt crisis, fell as traders took profits ahead of tomorrow's follow-up EU summit.
Demand for crude was depressed by concerns that EU policymakers may not come to an agreement on an anti-crisis plan tomorrow as it emerged that Germany is at odds with other euro zone members over whether to urge the European Central Bank (ECB) to buy European bonds on secondary market.
In addition, a political crisis seems to be brewing in Italy, whose government is yet to pass an austerity plan demand by the EU, with less than a day to go until the Wednesday deadline. Talking within the ruling coalition led by Prime Minister Silvio Berlusconi are deadlocked with one of the parties opposing raising the pension age.
Meanwhile, oil prices in the US still enjoyed support from yesterday's upbeat Chinese data. The preliminary reading of the HSBC China PMI index for October stood at 51.1, signalling the first expansion of the Chinese manufacturing sector in four months.
Many expected industrial activity in China to keep falling as a result of a series of monetary policy measures implemented by the government this year, including three interest rate hikes in an attempt to curb inflation.
Positive data from China, the world's second largest energy consumer, usually lifts demand for oil and base metals.
US light, sweet crude for December delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), climbed US$1.59 to US$92.86/barrel in morning trade in New York.
December Brent crude fell US$1.53 to US$109.77/barrel on the ICE Exchange this afternoon.
Today's top risers in the oil and gas sector were:
Petroneft Resources (LON:PTR), up 9.5 percent at 22.5 pence at midday
San Leon Energy (LON:SLE), up 8.5 percent at 15.2 pence
Sound Oil (LON:SOU), up 6.5 percent at 2.24 pence
Desire Petroleum (LON:DES), up 5.5 percent at 20 pence
Regal Petroleum (LON:RPT), up 4 percent at 39.25 pence
The top fallers were:
Forum Energy (LON:FEP), down 8 percent at 46 pence at midday
Frontera Resources (LON:FRR), down 6.5 percent at 1.5 pence
Leed Petroleum (LON:LDP), down 6 percent at 0.103 pence
Petro Matad (LON:MATD), down 5.5 percent at 24.75 pence
Europa Oil & Gas (LON:EOG), down 5 percent at 9.02 pence
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