PR: Oil prices remain at $79 as equities hold steady
Oil prices held on to the gains made at the end of last week amid a quiet day in stock markets.
The FTSE 100 was flat amid lack of domestic of international macroeconomic data, while futures for the Dow Jones Industrial Average and the broader S&P 500 index in the US rose 0.1%.
An update on the Chicago Fed manufacturing index will be the only notable data due to be released today and is not likely to have a significant impact on equities.
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Crude oil futures usually track movements in share prices, which serve as an indicator of the strength of the economy, impacting the outlook for energy demand.
Traders will also be looking to this week’s inventories reports from the American Petroleum Institute (API) and the US Energy Information Administration (EIA).
Both API and EIA reported further build-ups in crude stockpiles in the US, suggesting a decline in demand in the world’s largest energy consumer. API said that US inventories added 2.2 million barrels in the previous week, while EIA reported a gain of 1 million barrels.
US light, sweet crude for November delivery rose to US$76.80/barrel, while November Brent Crude improved to US$79.04/barrel.
Blue chip oil and gas producers didn’t show much movement today. Supermajors BP (LON:BP) and Shell (LON:RDSB) posted small gains, as did BG Group (LON:BG) and Tullow Oil (LON:TLW).
Another FTSE 100 constituent, Cairn Energy (LON:CNE), advanced 1%.
Petrofac (LON:PFC) declined 1%. Fellow oil and gas engineering firm Amec (LON:AMEC) was sitting just below the opening level.
Midcaps were mixed. Melrose Resources (LON:MRS) led the sector with a 2.5% advance. Dana Petroleum (LON:DNX) rose marginally, while JKX Oil & Gas (LON:JKX) and Dragon Oil (LON:DGO) added 1% each.
Heritage Oil (LON:HOIL), Salamander Energy (LON:SMDR) and Soco International (LON:SIA) moved in the opposite direction, sliding 1%.
Premier Oil (LON:PMO) was little moved.
Wood Group (LON:WG) tacked on 1%. Another services company Wellstream Holdings (LON:WSM) declined marginally.
Iraq focused exploration company Petrel Resources (LON:PET) was among the top performing small caps with a 6.5% gain. Central and South America focused company Gold Oil (LON:GOO) also did well, rising 4.5%.
