PT: Crude Set To Close Week Higher Ahead Of OPEC Meeting
Crude oil looks set to close the week higher for the first time in four weeks after another positive trading day on Thursday. This morning oil futures climbed over 1% in fairly light ‘seasonal’ volumes; in electronic trading January WTI was last changing hands around $73.45/barrel.
Analysts are now looking to Tuesday’s Organisation of Petroleum Exporting Countries (OPEC) meeting in Angola for direction, after the oil market has stabilised since falling from over $82/barrel a month ago. Many expect the cartel to maintain current production targets follow several recent comments which raised concerns of over-supply.
On a number of occasions several OPEC members have said recent prices have not reflected the fundamentals in the underlying marketplace, and that the weak US dollar had been the driving force behind the rally above $80/barrel.
Although according other reports, as it’s often the case with OPEC-centred speculation, the commentators have kept some investors guessing. Comments from other influential groups within the cartel, have apparently buoyed 2010’s demand outlook, with China and other developing economies said to be the driving force behind any near-term consumption growth.
As the festive season steps up a notch, with lower volumes creating potential for increased volatility, all eyes are likely to be on OPEC in shortened trading next week.
In London oil and gas majors have strengthen with the crude price, BP (LSE: BP) and Royal Dutch Shell (LSE: RDSB) both advanced 2%, natural gas focused major BG Group (LSE: BG.) climbed further rising almost 2.5%. Irish headquartered Tullow oil (LSE: TLW) gained more than 1.5%, while Edinburgh based Cairn Energy (LSE: CNE) was also stronger, rising more than 1% this morning.
In the FTSE250, things were a little less emphatic; both Afren (LSE: AFR) and JKX Oil and Gas (LSE: JKX) fell, dropping more than 1% each. Elsewhere Premier Oil (LSE: PMO) was the strongest, edging just 1% higher, while Dana Petroleum (LSE: DNX) and Heritage Oil (LSE: HOIL) both added more the 0.75%. Soco International (LSE: SIA).
Among the juniors on the AIM market, Urals Energy (LSE: UEN) and Max Petroleum (LSE: MXP) both advanced strongly with both stocks achieve double-digit gains this morning. Fortune Oil (AIM: FTO), Caspian Holdings (AIM: CSH) and Volga Gas (AIM: VGAS) followed rising more than 6%. Gulfsands Petroleum (LSE: GPX) was also positive.
Somalia focused explorer Range Resources (AIM: RRS) gained more than 3%, while Kurdistan operating Gulf Keystone Petroleum (AIM: GKP) and Aurelian Oil and Gas (AIM: AUL) both rose more than 1.5%.
