Oil prices rise ahead of US inventories data
Oil prices rose this afternoon amid cautious optimism ahead of today's US inventories report from the Department of Energy.
According to a survey by Bloomberg News, the survey will show a massive drop of 2.4 million barrel in oil stocks, suggesting that demand for oil from the world's largest energy consumer was on the rise.
Yesterday's report from the American Petroleum Institute (API) showed an even bigger drop of 4.6 million barrels for the week to December 18.
Demand for oil futures received more support from the positive outcome of today's offer of three year loans to European banks by the European Central Bank (ECB).
While the ECB was expected to lend between €250 billion and €300 billion, the central bank actually provided €489 billion in long term loans to improve liquidity in the European banking sector.
The price of oil is still supported by supply concerns in view of continuing unrest in Kazakhstan, where laid off oil workers have started protests that have already left at least 14 people dead.
Traders fear that the situation could worsen with the riots spreading across the country and ultimately leading to disruptions in oil supplies.
Kazakhstan's oil output of 1.5 million barrels per day is roughly compared to what Libya used to export before the inception of the civil war in February this year.
US light, sweet crude for February delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), rose 45 cents to US$97.69/barrel in morning trade in New York.
February Brent crude added 53 cents to trade at US$107.30/barrel on the ICE Exchange this afternoon.
Today's top risers in the oil and gas sector were:
Europa Oil & Gas (LON:EOG), up 13 percent at 7.9 pence at midday
Sound Oil (LON:SOU), up 7.5 percent at 1.8 pence
Cadogan Petroleum (LON:CAD), up 6.5 percent at 25.5 pence
Resaca Exploitation (LON:RSOX), up 6 percent at 0.901 pence
TXO (LON:TXO), up 5.5 percent at 0.716 pence
The top fallers were:
Woburn Energy (LON:WBN), down 13.5 percent at 1.25 pence at midday
Amerisur Resources (LON:AMER), down 7.5 percent at 15.69 pence
Valiant Petroleum (LON:VPP), down 7 percent at 406.5 pence
Gasol (LON:GAS), down 5 percent at 0.451 pence
President Petroleum (LON:PPT), down 5 percent at 34.15 pence
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