Oil prices rise on US retail sales and manufacturing data
Oil prices rose this afternoon as the markets shook off the results of today's auction of Spanish one year bonds, which drove yields above five percent, adding to fears that the European crisis may be spiralling out of control.
Demand for oil futures was driven by today's upbeat US data, which suggested that the economic recovery in the US is picking up, as well as expectations of a decline in US oil inventories.
The Commerce Department this afternoon reported that retail sales in the US rose for the fifth month in a row, edging up 0.5 percent in October compared to the previous month, while analysts expected to see an increase of 0.3 percent.
Likewise, today's US manufacturing data was positive. The Commerce Department jumped from minus-8.5 in October to 0.6 in November, the first positive reading in six months.
Traders are now looking to tomorrow's report on US crude oil stockpiles from the US Department of Energy, which will be out tomorrow. Analysts polled by Bloomberg expected to see a decline in inventories, a sign that oil demand from the world's largest energy consumer was on the rise last week.
US light, sweet crude for December delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), rose 82 cents to US$98.96/barrel in morning trade in New York.
December Brent crude advanced 49 cents to US$111.83/barrel on the ICE Exchange this afternoon.
The top risers in the oil and gas sector were:
San Leon Energy (LON:SLE), up 8.5 percent at 12.5 percent at midday
Fortune Oil (LON:FTO), up 7 percent at 9.85 pence
Providence Resources (LON:PVR), up 6 percent at 220 pence
Xtract Energy (LON:XTR), up 5.5 percent at 1.9 pence
Exillon Energy (LON:EXI), up 5 percent at 313.3 pence
The top fallers were:
Europa Oil & Gas (LON:EOG), down 26 percent at 7.85 pence at midday
Leed Petroleum (LON:LDP), down 8.5 percent at 0.087 pence
Aurelian Oil & Gas (LON:AUL), down 8.5 percent at 23.81 pence
PetroLatina (LON:PELE), down 7 percent at 16.5 pence
Woburn Energy (LON:WBN), down 5.5 percent at 1.58 pence
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