Oil prices were back on the rise following a pull back on profit taking after main contracts for January and February topped US$90/barrel and under pressure from a stronger US dollar.
Crude futures rallied after US President Barack Obama agreed to extend tax breaks introduced by his predecessor George W Bush, improving the outlook for fuel demand.
The US dollar recovered late yesterday after EU finance ministers decided not to provide immediate rescue package to Spain and Portugal and not to extend Europe's rescue fund.
Europe’s single currency rose earlier on Wednesday on expectations that Ireland will pass the toughest budget in the country’s history in an effort to contain its soaring debt.
A stronger American currency makes the dollar-denominated crude more expensive for holders of other currencies, denting demand.
Meanwhile, UAE’s government owned oil company Abu Dhabi National Oil hiked its November crude prices to two year highs, tracking gains in benchmark futures contracts on global commodity exchanges.
US light, sweet crude for January delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), rose to US$88.82/barrel. February crude stood at US$89.31/barrel.
On the ICE Exchange, January Brent Crude reached US$91.63/barrel, while Brent for February delivery last traded at 91.73/barrel.
BP (LON:BP) added 1% and fellow supermajor Shell (LON:RDSB) posted a small gain.
BG Group (LON:BG), Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) declined marginally.
Amec (LON:AMEC) was little moved. Another oil & gas engineering firm Petrofac (LON:PFC) declined 2%.
Melrose Resources (LON:MRS) led the midcaps with a 1% advance.
Heritage Oil (LON:HOIL) and Premier Oil (LON:PMO) moved in the opposite direction, shedding 2%.
JKX Oil & Gas (LON:JKX), Salamander Energy (LON:SMDR) and Soco International (LON:SIA) declined marginally.
Service company Wood Group (LON:WG) was sitting just below the opening level.
US focused Nighthawk Energy (LON:HAWK) was among the top performing juniors, advancing 9%.