This morning European trading saw crude oil slide marginally losing around 0.3%. Generally this week oil investors have experienced a fairly mixed time, crude futures have risen slightly overall as West Texas Intermediate prices move toward the top of the established trading range.
At $71.45 the crude oil price has continued to gain some support from the persistent decline of the US Dollar despite the growing over-supply issues facing the US Oil and Gasoline markets.
The US supply picture has dominated recent themes in the oil market and this week was no exception, this weeks inventory reports underlined a negative trend. On the one hand, Crude inventories unexpectedly fell almost 1m barrels however gasoline distillates rose three times more than anticipated. On the face of it, many investors will still be left to ponder the ongoing US supply picture.
Investors who have been following the supply data will now assess the relative strength of the American consumption outlook. Against a backdrop of high unemployment and a weakening dollar, many commentators believe the outlook for the oil market remains clouded.
On the London Stock Exchange oil and gas stocks were generally weaker with the exception of Shell (LSE: RDSB) and BG Group (LSE: BG) who both posted marginal gains. BP (LSE: BP) declined marginally, as did Petrofac (LSE: PFC). Cairn Energy (LSE: CNE) lost almost 1%, while Tullow Oil (LSE: TLW) retreated 1.2%.
In the FTSE 250, Dana Petroleum (LSE: DNX) declined 1.5%. Dragon Oil (LSE: DGO) was down almost 1%, while Heritage Oil (LSE: HOIL) managed to keep its losses to a minimum.
Kazakhstan and FSU operating junior explorer Caspian Holding (AIM: CSH) spiked 80% this morning to trade at 1.75 pence.
South American focused Pan Andean Resources (AIM: PRE) rose 9%, North American based explorer Nighthawk Energy (AIM: HAWK) and European focused oil and gas developer Ascent Resources (AIM: AST) also advanced with gains of almost 7%. Similarly Atlantic Canada operating oil and gas group Enegi Oil (AIM: ENEG) rose more than 6.5%
Meanwhile Iraq and Algeria operating Gulf Keystone Petroleum (AIM: GKP) rose more than 4%. Gold Oil (AIM: GOO), Mediterranean Oil & Gas (AIM: MOG) and Matra Petroleum (AIM: MTA) all rose more than 3% this morning.