Oil prices were on the rise today as outlook for energy demand brightened after the EU struck an agreement to provide more financial aid to Greece to save it from a default.
The decision to provide another €109 billion in financial aid for Greece inspired optimism that EU leaders have the debt situation in Europe under control.
The deal relieved pressure from concerns that a default by Greece could do significant collateral damage in Europe and trigger a financial meltdown, reducing energy demand.
Demand for crude oil futures rose further after it emerged that the International Energy Agency (IEA) has decided against releasing more oil into the market.
The agency tapped its strategic reserves for 60 million barrels a month ago in an effort to make up for the supply shortfall caused by the civil war in Libya.
Oil prices have also benefitted from Wednesday's report on US crude oil supplies from the Department of Energy, whose data showed that stockpiles of crude oil in the US shed a massive 3.7 million barrels last week.
Crude prices in the US fell on profit taking in morning trade in New York, but Brent crude held above the opening level in London.
US light, sweet crude for September delivery fell 19 cents to US$98.94/barrel in afternoon trade on the New York Mercantile Exchange (NYMEX). September Brent crude climbed 12 cents to 117.65/barrel on the ICE Exchange this afternoon.
Today’s top risers in the oil and gas sector were:
Petro Matad (LON:MATD), up 13.5 percent at 102.5 pence at midday
San Leon Energy (LON:SLE), up 12.5 percent at 27.25 pence
Sound Oil (LON:SOU), up 10 percent at 3.28 pence
Borders & Southern (LON:BOR), up 8 percent at 58.75 pence
Global Petroleum (LON:GBP), up 7.5 percent at 17.75 pence
The top fallers were:
Woburn Energy (LON:WBN), down 7 percent at 2.09 pence at midday
Frontera Resources (LON:FRR), down 6.5 percent at 3.15 pence
Matra Petroleum (LON:MTA), down 5.5 percent at 1.58 pence
Forum Energy (LON:FEP), down 4.5 percent at 44 pence
Petrel Resources (LON:PET), down 3.5 percent at 14.5 pence
