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Crude Oil Futures Maintain Gains as Investors Anticipate Key Supply News

9th Sep 2009, 12:10 pm Crude Oil Futures Maintain Gains as Investors Anticipate Key Supply News

Crude Oil futures maintain yesterday’s gains ahead of this afternoons OPEC meeting, with West Texas Intermediary (WTI) for December delivery trading around $71.90, having traded up to $72.10 mid-morning.


As anticipated Tuesday afternoon, crude extend early gains, as crude oil traders positioned themselves in the lead up to what may be an eventful Wednesday afternoon. In Vienna this afternoon OPEC will announce their latest production targets, which will be followed this evening by the first weekly inventory data out of the USA as the American Petroleum Institute release their report a day late due to the shorter American working week.


The 20 OPEC representatives are expected to sustain their stimulus plans until the recovery is well established, analyst consensus is for OPEC production targets to remain unchanged. Yesterday, in an interview with state sponsored news agency KUNA, Kuwait's oil minister Sheikh Ahmad al-Abdullah stated that “oil prices are reasonable and acceptable, and OPEC is expected to keep output unchanged”.


London listed oil producers reflect the recent gains in Crude Oil markets, with FTSE 100 constituent Cairn Energy (LSE:CNE) leading the major producers rising over 2%, other FTSE 100 oil producers British Petroleum (LSE:BP), Royal Dutch Shell (LSE:RDSB) and Tullow Oil (LSE:TLW) were marginally higher also.


In the junior market trading has been mixed this morning.


Aurelian Oil and Gas (AIM: AUL), Mediterranean Oil & Gas (AIM: MOG) and Regal Petroleum (AIM:RPT) all continue their winning streak gaining more than 3%. Elsewhere Xtract Energy (AIM: XTR) and Nighthawk Energy (AIM: HAWK) rose modestly.


Despite announcing reduced first half losses, European focused oil junior Ascent Resource (AIM: AST) dropped 3% giving back some of yesterday’s gains. Iraq focused Petrel Resource (AIM: PET) fell for  second consecutive day, while Africa and Russia focused Victoria Oil & Gas (AIM:VOG) slipped 3%.

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