Oil futures advanced today, spurred by an upward movement in stock markets and a leak in BP’s (LON:BP) 46.93% owned pipeline in the US.
Stocks in Europe and the US were on the rise today after worries over Europe’s debt problems subsided following Japan’s pledge to buy bonds from the European Financial Stability Facility (EFSF) to help Europe cope with the fiscal crisis.
Helping out was Alcoa’s (NYSE:AA) quarterly report, which beat expectations, inspiring optimism about the earnings season.
Oil prices got more support from a leak in an Alaskan pipeline, which has led to its shutdown and a decline in production from the largest field in the country.
US light, sweet crude for February delivery climbed to US$90.08/barrel, while March crude reached US$91.47/barrel on the New York Mercantile Exchange (NYMEX).
On the ICE Exchange, February Brent Crude last traded at US$96.90/barrel.
Supermajors BP (LON:BP) and Shell (LON:RDSB) climbed 1.5% and 1% respectively.
BG Group (LON:BG) posted a small gain, while Cairn Energy (LON:CNE) and Tullow Oil (LON:TLW) advanced 4.5% and 1.5%.
Engineering firms Amec (LON:AMEC) and Petrofac (LON:PFC) were up 1% and 2.5%.
Salamander Energy (LON:SMDR) led the midcaps, advancing 3.5%.
Soco International (LON:SIA) and Melrose Resources (LON:MRS) added 1.8% and 1.35% respectively.
Heritage Oil (LON:HOIL), Premier Oil (LON:PMO) and JKX Oil & Gas (LON:JKX) rose marginally. Service company Wood Group (LON:WG) tacked on 2.4%.
Oil and gas focused investor Solo Oil (LON:SOLO) led the juniors, soaring 15%.
Aurelian Oil & Gas (LON:AUL), which is focused on the Central and Eastern European oil and gas markets, also did well, rising 6.5%.