Oil prices rallied today, pushed higher by several factors including optimism that Greece will receive another aid package by the end of June and avoid restructuring its debt. Fears that Greece will default on its debt, negatively affecting the credit ratings of other euro zone states, weighed heavily on equity and commodity markets last week.
The euro rose sharply against the US dollar on the reports, which gave further support to oil prices, making the dollar-denominated crude cheaper for holders of other currencies.
Crude oil futures received more support from the news that a leak was discovered in a pipeline running from Canada to Cushing, Oklahoma, which is the main delivery point for NYMEX crude contracts, leading to its shutdown.
Traders will be looking for Wednesday’s inventories report from the US Department of Energy and tracking developments in the European fiscal crisis.
US light, sweet crude for July delivery, which is currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), advanced to 102.48/barrel. August cruse reached US$103/barrel.
July Brent crude last traded at US$116.43/barrel on the ICE Exchange.
Supermajors BP (LON:BP) and Royal Dutch Shell (LON:RDSB) added 2 percent. Tullow Oil (LON:TLW) advanced 1.6 percent and Cairn Energy (LON:CNE) slipped 1.6 percent.
Soco International (LON:SIA) led the midcaps, advancing 4 percent. Premier Oil (LON:PMO) and Heritage Oil (LON:HOIL) added 2.5 percent and 1.5 percent respectively. JKX Oil & Gas (LON:JKX) climbed 1 percent.
Melrose Resources (LON:MRS) shed 1 percent.
EU operating Mediterranean Oil & Gas (LON:MOG) and Iraqi Kurdistan focused Gulf Keystone Petroleum (LON:GKP) were among the top performing small caps, advancing 7.5 percent and 6.5 percent respectively.
Another EU focused company Northern Petroleum (LON:NOP) and Green Dragon Gas (LON:GDG) tacked on nearly 6 percent.