Oil futures moved in different directions today as while strong US data pushed the West Texas Intermediate (WTI) benchmark higher, Brent crude fell due to pressure from profit taking.
Investors sold Brent after prices topped US$115 yesterday amid reports of falling supplies from the North Sea and mounting tensions in the Middle East region.
Fears that the Iranian nuclear crisis could lead to a large scale military conflict in the oil-rich region intensified after reports said Israeli Prime Minister was considering a strike to force the Middle Eastern nation to abandon its controversial uranium enrichment programme.
In addition, deputy foreign minister of Israel said he did not believe there could be a diplomatic solution to the crisis.
Iran has been hit by a series of sanctions from the US and the EU, which have resulted in a sharp drop in its oil exports. The country has previously threatened to block assets to the Strait of Hormuz – a major shipping route used to transport 20 percent of the world’s oil – in response to the sanctions.
Meanwhile, crude futures in the US advanced after retail sales data topped forecasts, showing the first gain in four months. The Commerce Department said sales climbed 0.8 percent last month following a 0.7 percent drop in June.
US light, sweet crude for September delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), climbed 40 cents to US$93.13/barrel this afternoon.
September Brent crude declined 18 cents to US$113.42/barrel on the ICE Exchange.
Today’s top risers in the sector were:
Sound Oil (LON:SOU), up 11.5 percent at 0.585 pence at midday
Silvermere Energy (LON:SLME), up 8.5 percent at 11.65 pence
Aurelian Oil & Gas (LON:AUL), up 7.5 percent at 9.75 pence
Antrim Energy (LON:AEY), up 5.5 percent at 47 pence
Max Petroleum (LON:MXP), up 5.5 percent at 4.75 pence
Wessex Exploration (LON:WSX), up 4.5 percent at 6.94 pence
The top fallers were:
Oilex (LON:OEX), down 7.5 percent at 6 pence at midday
Matra Petroleum (LON:MTA), down 6.5 percent at 1.86 pence
Sirius Petroleum (LON:SRSP), down 6 percent at 3.86 pence
Chariot Oil & Gas (LON:CHAR), down 5.5 percent at 117.12 pence
Nostra Terra Oil & Gas (LON:NTOG), down 5 percent at 0.43 pence
Global Petroleum (LON:GBP), down 4 percent at 10.05 pence
