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Oil & Gas Stocks Flat As Crude Investors Await Further Inventory News

15th Oct 2009, 10:58 am
Oil & Gas Stocks Flat As Crude Investors Await Further Inventory News

The crude price extended recent gains following supply data from the American Petroleum Institute (API). The week’s first inventory report last night said crude oil and gasoline stockpiles declined last week, while distillate inventories increased.

As the oil price continues to receive support from the rallying equity market and a weak US Dollar, crude futures neared $76 per barrel overnight before easing back. On the New York Mercantile Exchange, Nymex Light Sweet crude for November is trading marginally higher at $75.69.

The rally has largely been sentiment based with more than a little help from the persistently weak US Dollar. Both the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) have upgraded their demand outlook.

Some analysts and market commentators have pointed to the potential for a better-than-expected seasonal increase in demand in the run-up to the Christmas holidays. The apparent progress of the economic recovery has led to heightened expectations of crude oil and gasoline consumption into the year end.

With the API report suggesting a decline in the US Crude stockpiles from the highest levels seen since the Eighties, investors will now focus their attention on the primary inventory report from the US Department of Energy later today. Investors will be keen to see what impact the increased demand is likely to have.

On Wall Street, trading has been fairly mixed. Oil & Gas majors were generally flat as Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) both rose fractionally, gaining around a quarter of a percent.

French Oil & Gas producer Total SA (NYSE:TOT), Murphy Oil Corp (NYSE: MUR) and ConocoPhillips (NYSE:COP) were all trading in negative territory after slipping marginally lower.

Canada based multinational operator EnCana (NYSE:ECA & TSX: ECA) was the weakest in the sector, falling over 1%.

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