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BP, BG Group, Premier Oil, Dana Petroleum, Melrose and Salamander Energy rise despite lower crude

19th Mar 2010, 1:38 pm BP, BG Group, Premier Oil, Dana Petroleum, Melrose and Salamander Energy rise despite lower crude

Traders were taking their cues from movements in the currency markets as Friday has been quiet in terms of major economic updates. Oil prices declined as the US dollar firmed on a weaker euro, which was under pressure from renewed worries over Greece’s debt situation. The latest development in Greek fiscal crisis came yesterday when Gthe debt laden country said that it was unlikely that it would receive aid from other euro zone countries and that it could turn to the IMF (International Monetary Fund) for help.

Jitters over the persisting debt problem in Greece and other euro zone countries including Portugal were subdued two weeks ago when the country successfully conducted a bond issue to raise €5 billion to meet its near term commitments and introduced a fresh economic austerity package to save some 4.8 billion. According to estimates, Greece is going to need to secure €50 billion this year or face a default.

Today, the German government said it does not rule out IMF aid for Greece.

A stronger American currency makes US dollar-denominated commodities such as crude more expensive for holders of other currencies, curbing demand.

The prices was also hit by an apparently declining crude demand in the US after Wednesday’s inventories update from the EIA (Energy Information Administration) showed an increase of just 1 million barrels in US crude stockpiles for the previous week, while distillates including heating oil and gasoline stocks were down 1.5 million barrels and 1.7 million barrels respectively.

Blue chip oil and gas producers were mixed today. BG Group (LSE: BG) was the top performer with a 1.1% gain. BP (LSE: BP) rose marginally, while fellow supermajor Shell (LSE: RDSB) was flat, as was another FTSE 100 constituent Tullow Oil (LSE: TLW).

Cairn Energy (LSE: CNE) slid to the bottom of the pile, shedding 1.3%.

Oil and gas engineering firms Amec (LSE: AMEC) and Petrofac (LSE: PFC) held steady.

Midcaps performed better as most companies were on the rise. Premier Oil (LSE: PMO) and Dana Petroleum (LSE: DNX) led the way with gains of 2.4%. Melrose Resources (LSE: MRS) moved up 1.5%, while Salamander Energy (LSE: SMDR) added 1.1%. Dragon Oil (LSE: DGO) and Heritage Oil (LSE: HOIL) gained less than 1%.

JKX Oil & Gas (LSE: JKX) and Soco International (LSE: SIA) were flat.

Energy investor Xtract Energy PLC (AIM: XTR) and North Sea explorers Xcite Energy (AIM: XEL) led the juniors, climbing 7.5% and 6% respectively. Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) added 4%.

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